Correlation Between Symphony Floating and Edgepoint Cdn

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Symphony Floating and Edgepoint Cdn 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 Symphony Floating and Edgepoint Cdn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Floating Rate and Edgepoint Cdn Growth, you can compare the effects of market volatilities on Symphony Floating and Edgepoint Cdn 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 Symphony Floating with a short position of Edgepoint Cdn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Floating and Edgepoint Cdn.

Diversification Opportunities for Symphony Floating and Edgepoint Cdn

0.84
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Symphony and Edgepoint is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Floating Rate and Edgepoint Cdn Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgepoint Cdn Growth and Symphony Floating 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 Symphony Floating Rate are associated (or correlated) with Edgepoint Cdn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgepoint Cdn Growth has no effect on the direction of Symphony Floating i.e., Symphony Floating and Edgepoint Cdn go up and down completely randomly.

Pair Corralation between Symphony Floating and Edgepoint Cdn

Assuming the 90 days trading horizon Symphony Floating is expected to generate 1.06 times less return on investment than Edgepoint Cdn. In addition to that, Symphony Floating is 1.53 times more volatile than Edgepoint Cdn Growth. It trades about 0.06 of its total potential returns per unit of risk. Edgepoint Cdn Growth is currently generating about 0.1 per unit of volatility. If you would invest  2,487  in Edgepoint Cdn Growth on September 21, 2024 and sell it today you would earn a total of  628.00  from holding Edgepoint Cdn Growth or generate 25.25% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy98.19%
ValuesDaily Returns

Symphony Floating Rate  vs.  Edgepoint Cdn Growth

 Performance 
       Timeline  
Symphony Floating Rate 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Weak
Over the last 90 days Symphony Floating Rate has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong technical and fundamental indicators, Symphony Floating is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Edgepoint Cdn Growth 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Edgepoint Cdn Growth are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively steady forward-looking indicators, Edgepoint Cdn is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Symphony Floating and Edgepoint Cdn Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Symphony Floating and Edgepoint Cdn

The main advantage of trading using opposite Symphony Floating and Edgepoint Cdn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Floating position performs unexpectedly, Edgepoint Cdn 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 Edgepoint Cdn will offset losses from the drop in Edgepoint Cdn's long position.
The idea behind Symphony Floating Rate and Edgepoint Cdn Growth 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Equity Valuation
Check real value of public entities based on technical and fundamental data
Commodity Directory
Find actively traded commodities issued by global exchanges