Correlation Between Symphony Environmental and Grand Vision

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

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

Diversification Opportunities for Symphony Environmental and Grand Vision

0.0

Correlation Coefficient

Symphony Environmental  Grand Vision

Pay attention - limited upside

The 3 months correlation between Symphony and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Environmental Technol and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and Symphony Environmental 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 Environmental Technologies are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Symphony Environmental i.e., Symphony Environmental and Grand Vision go up and down completely randomly.

Pair Corralation between Symphony Environmental and Grand Vision

Assuming the 90 days trading horizon Symphony Environmental Technologies is expected to under-perform the Grand Vision. But the stock apears to be less risky and, when comparing its historical volatility, Symphony Environmental Technologies is 6.8 times less risky than Grand Vision. The stock trades about -0.02 of its potential returns per unit of risk. The Grand Vision Media is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  20.00  in Grand Vision Media on October 9, 2024 and sell it today you would earn a total of  78.00  from holding Grand Vision Media or generate 390.0% return on investment over 90 days.

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

Symphony Environmental Technol  vs.  Grand Vision Media

Symphony Environmental

Risk-Adjusted Performance

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Very Weak

Over the last 90 days Symphony Environmental Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Grand Vision Media

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Grand Vision Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Grand Vision is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Symphony Environmental and Grand Vision

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

The idea behind Symphony Environmental Technologies and Grand Vision Media 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.