Correlation Between Synergie and Aubay Socit

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

By analyzing existing cross correlation between Synergie SE and Aubay Socit Anonyme, you can compare the effects of market volatilities on Synergie and Aubay Socit 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 Synergie with a short position of Aubay Socit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synergie and Aubay Socit.

Diversification Opportunities for Synergie and Aubay Socit

-0.57

Correlation Coefficient

Synergie  Aubay Socit

Excellent diversification

The 3 months correlation between Synergie and Aubay is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Synergie SE and Aubay Socit Anonyme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aubay Socit Anonyme and Synergie 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 Synergie SE are associated (or correlated) with Aubay Socit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aubay Socit Anonyme has no effect on the direction of Synergie i.e., Synergie and Aubay Socit go up and down completely randomly.

Pair Corralation between Synergie and Aubay Socit

Assuming the 90 days trading horizon Synergie SE is expected to generate 0.87 times more return on investment than Aubay Socit. However, Synergie SE is 1.16 times less risky than Aubay Socit. It trades about 0.01 of its potential returns per unit of risk. Aubay Socit Anonyme is currently generating about 0.0 per unit of risk. If you would invest  2,985  in Synergie SE on September 13, 2024 and sell it today you would earn a total of  35.00  from holding Synergie SE or generate 1.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Synergie SE  vs.  Aubay Socit Anonyme

Synergie SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Synergie SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Synergie is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aubay Socit Anonyme

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Aubay Socit Anonyme are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Aubay Socit sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Synergie and Aubay Socit

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

The idea behind Synergie SE and Aubay Socit Anonyme 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.