Correlation Between Sikarin Public and Symphony Communication

Can any of the company-specific risk be diversified away by investing in both Sikarin Public and Symphony Communication 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 Sikarin Public and Symphony Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sikarin Public and Symphony Communication Public, you can compare the effects of market volatilities on Sikarin Public and Symphony Communication 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 Sikarin Public with a short position of Symphony Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sikarin Public and Symphony Communication.

Diversification Opportunities for Sikarin Public and Symphony Communication

-0.22

Correlation Coefficient

Sikarin Public  Symphony Communication

Very good diversification

The 3 months correlation between Sikarin and Symphony is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sikarin Public and Symphony Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Communication and Sikarin Public 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 Sikarin Public are associated (or correlated) with Symphony Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Communication has no effect on the direction of Sikarin Public i.e., Sikarin Public and Symphony Communication go up and down completely randomly.

Pair Corralation between Sikarin Public and Symphony Communication

Assuming the 90 days trading horizon Sikarin Public is expected to generate 11.6 times less return on investment than Symphony Communication. But when comparing it to its historical volatility, Sikarin Public is 3.64 times less risky than Symphony Communication. It trades about 0.03 of its potential returns per unit of risk. Symphony Communication Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  770.00  in Symphony Communication Public on September 5, 2024 and sell it today you would earn a total of  100.00  from holding Symphony Communication Public or generate 12.99% return on investment over 90 days.

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

Sikarin Public  vs.  Symphony Communication Public

Sikarin Public

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sikarin Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Sikarin Public is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Symphony Communication

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Symphony Communication Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Symphony Communication disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sikarin Public and Symphony Communication

The main advantage of trading using opposite Sikarin Public and Symphony Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sikarin Public position performs unexpectedly, Symphony Communication 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 Symphony Communication will offset losses from the drop in Symphony Communication's long position.

The idea behind Sikarin Public and Symphony Communication Public 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.

Check out your portfolio center.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.