Correlation Between H B and Symrise Ag

Can any of the company-specific risk be diversified away by investing in both H B and Symrise Ag at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining H B and Symrise Ag into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between H B Fuller and Symrise Ag PK, you can compare the effects of market volatilities on H B and Symrise Ag and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in H B with a short position of Symrise Ag. Check out your portfolio center. Please also check ongoing floating volatility patterns of H B and Symrise Ag.

Diversification Opportunities for H B and Symrise Ag

0.52

Correlation Coefficient

H B  Symrise Ag

Very weak diversification

The 3 months correlation between FUL and Symrise is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding H B Fuller and Symrise Ag PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symrise Ag PK and H B is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on H B Fuller are associated (or correlated) with Symrise Ag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symrise Ag PK has no effect on the direction of H B i.e., H B and Symrise Ag go up and down completely randomly.

Pair Corralation between H B and Symrise Ag

Considering the 90-day investment horizon H B Fuller is expected to under-perform the Symrise Ag. In addition to that, H B is 1.24 times more volatile than Symrise Ag PK. It trades about -0.12 of its total potential returns per unit of risk. Symrise Ag PK is currently generating about -0.05 per unit of volatility. If you would invest  2,646  in Symrise Ag PK on December 28, 2024 and sell it today you would lose (149.00) from holding Symrise Ag PK or give up 5.63% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

H B Fuller  vs.  Symrise Ag PK

H B Fuller

Risk-Adjusted Performance

Very Weak

Over the last 90 days H B Fuller has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Symrise Ag PK

Risk-Adjusted Performance

Very Weak

Over the last 90 days Symrise Ag PK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Symrise Ag is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with H B and Symrise Ag

The main advantage of trading using opposite H B and Symrise Ag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H B position performs unexpectedly, Symrise Ag can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Symrise Ag will offset losses from the drop in Symrise Ag's long position.

The idea behind H B Fuller and Symrise Ag PK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.