Correlation Between Chrysalis Investments and Synthomer Plc

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

Diversification Opportunities for Chrysalis Investments and Synthomer Plc

-0.49
  Correlation Coefficient

Very good diversification

The 3 months correlation between Chrysalis and Synthomer is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chrysalis Investments and Synthomer plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthomer plc and Chrysalis Investments 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 Chrysalis Investments are associated (or correlated) with Synthomer Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synthomer plc has no effect on the direction of Chrysalis Investments i.e., Chrysalis Investments and Synthomer Plc go up and down completely randomly.

Pair Corralation between Chrysalis Investments and Synthomer Plc

Assuming the 90 days trading horizon Chrysalis Investments is expected to generate 0.58 times more return on investment than Synthomer Plc. However, Chrysalis Investments is 1.74 times less risky than Synthomer Plc. It trades about 0.16 of its potential returns per unit of risk. Synthomer plc is currently generating about -0.2 per unit of risk. If you would invest  9,330  in Chrysalis Investments on September 28, 2024 and sell it today you would earn a total of  1,450  from holding Chrysalis Investments or generate 15.54% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Chrysalis Investments  vs.  Synthomer plc

 Performance 
       Timeline  
Chrysalis Investments 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Chrysalis Investments are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Chrysalis Investments unveiled solid returns over the last few months and may actually be approaching a breakup point.
Synthomer plc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Synthomer plc 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 basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Chrysalis Investments and Synthomer Plc Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Chrysalis Investments and Synthomer Plc

The main advantage of trading using opposite Chrysalis Investments and Synthomer Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chrysalis Investments position performs unexpectedly, Synthomer Plc 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 Synthomer Plc will offset losses from the drop in Synthomer Plc's long position.
The idea behind Chrysalis Investments and Synthomer plc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.