Correlation Between Symphony Communication and Amata Public

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

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

Diversification Opportunities for Symphony Communication and Amata Public

-0.12

Correlation Coefficient

Symphony Communication  Amata Public

Good diversification

The 3 months correlation between Symphony and Amata is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Communication Public and Amata Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Public and Symphony Communication 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 Communication Public are associated (or correlated) with Amata Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Public has no effect on the direction of Symphony Communication i.e., Symphony Communication and Amata Public go up and down completely randomly.

Pair Corralation between Symphony Communication and Amata Public

Assuming the 90 days trading horizon Symphony Communication Public is expected to under-perform the Amata Public. In addition to that, Symphony Communication is 1.07 times more volatile than Amata Public. It trades about -0.11 of its total potential returns per unit of risk. Amata Public is currently generating about 0.13 per unit of volatility. If you would invest  2,270  in Amata Public on October 26, 2024 and sell it today you would earn a total of  405.00  from holding Amata Public or generate 17.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Symphony Communication Public  vs.  Amata Public

Symphony Communication

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Symphony Communication Public 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 forward-looking signals remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Amata Public

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amata Public are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Amata Public reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Symphony Communication and Amata Public

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

The idea behind Symphony Communication Public and Amata 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.