Correlation Between Golden Metal and Symphony Environmental
Can any of the company-specific risk be diversified away by investing in both Golden Metal and Symphony Environmental 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 Golden Metal and Symphony Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Metal Resources and Symphony Environmental Technologies, you can compare the effects of market volatilities on Golden Metal and Symphony Environmental 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 Golden Metal with a short position of Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Metal and Symphony Environmental.
Diversification Opportunities for Golden Metal and Symphony Environmental
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Golden and Symphony is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Golden Metal Resources and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental and Golden Metal 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 Golden Metal Resources are associated (or correlated) with Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of Golden Metal i.e., Golden Metal and Symphony Environmental go up and down completely randomly.
Pair Corralation between Golden Metal and Symphony Environmental
Assuming the 90 days trading horizon Golden Metal Resources is expected to generate 1.61 times more return on investment than Symphony Environmental. However, Golden Metal is 1.61 times more volatile than Symphony Environmental Technologies. It trades about 0.22 of its potential returns per unit of risk. Symphony Environmental Technologies is currently generating about -0.07 per unit of risk. If you would invest 2,350 in Golden Metal Resources on September 15, 2024 and sell it today you would earn a total of 600.00 from holding Golden Metal Resources or generate 25.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Golden Metal Resources vs. Symphony Environmental Technol
Performance |
Timeline |
Golden Metal Resources |
Symphony Environmental |
Golden Metal and Symphony Environmental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Golden Metal and Symphony Environmental
The main advantage of trading using opposite Golden Metal and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Metal position performs unexpectedly, Symphony Environmental 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 Symphony Environmental will offset losses from the drop in Symphony Environmental's long position.Golden Metal vs. Givaudan SA | Golden Metal vs. Antofagasta PLC | Golden Metal vs. Ferrexpo PLC | Golden Metal vs. Atalaya Mining |
Symphony Environmental vs. Silvercorp Metals | Symphony Environmental vs. Cornish Metals | Symphony Environmental vs. Deltex Medical Group | Symphony Environmental vs. Golden Metal Resources |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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