Correlation Between Symphony Communication and Global Green

Can any of the company-specific risk be diversified away by investing in both Symphony Communication and Global Green 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 Global Green 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 Global Green Chemicals, you can compare the effects of market volatilities on Symphony Communication and Global Green 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 Global Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Communication and Global Green.

Diversification Opportunities for Symphony Communication and Global Green

0.84

Correlation Coefficient

Symphony Communication  Global Green

Very poor diversification

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

Pair Corralation between Symphony Communication and Global Green

Assuming the 90 days trading horizon Symphony Communication Public is expected to under-perform the Global Green. In addition to that, Symphony Communication is 1.23 times more volatile than Global Green Chemicals. It trades about -0.24 of its total potential returns per unit of risk. Global Green Chemicals is currently generating about -0.12 per unit of volatility. If you would invest  450.00  in Global Green Chemicals on December 2, 2024 and sell it today you would lose (72.00) from holding Global Green Chemicals or give up 16.0% of portfolio value over 90 days.

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

Symphony Communication Public  vs.  Global Green Chemicals

Symphony Communication

Risk-Adjusted Performance

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 April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Global Green Chemicals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Green Chemicals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental 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.

Pair Trading with Symphony Communication and Global Green

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

The idea behind Symphony Communication Public and Global Green Chemicals 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.