Correlation Between Lowland Investment and Synthomer Plc
Can any of the company-specific risk be diversified away by investing in both Lowland Investment 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 Lowland Investment and Synthomer Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lowland Investment Co and Synthomer plc, you can compare the effects of market volatilities on Lowland Investment 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 Lowland Investment with a short position of Synthomer Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowland Investment and Synthomer Plc.
Diversification Opportunities for Lowland Investment and Synthomer Plc
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lowland and Synthomer is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Lowland Investment Co and Synthomer plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthomer plc and Lowland Investment 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 Lowland Investment Co 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 Lowland Investment i.e., Lowland Investment and Synthomer Plc go up and down completely randomly.
Pair Corralation between Lowland Investment and Synthomer Plc
Assuming the 90 days trading horizon Lowland Investment Co is expected to generate 0.19 times more return on investment than Synthomer Plc. However, Lowland Investment Co is 5.33 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 0.03 per unit of risk. If you would invest 14,439 in Lowland Investment Co on September 3, 2025 and sell it today you would earn a total of 911.00 from holding Lowland Investment Co or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Lowland Investment Co vs. Synthomer plc
Performance |
| Timeline |
| Lowland Investment |
| Synthomer plc |
Lowland Investment and Synthomer Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lowland Investment and Synthomer Plc
The main advantage of trading using opposite Lowland Investment and Synthomer Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowland Investment 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.| Lowland Investment vs. Beowulf Mining | Lowland Investment vs. Dairy Farm International | Lowland Investment vs. Lundin Mining Corp | Lowland Investment vs. Blackrock World Mining |
| Synthomer Plc vs. Check Point Software | Synthomer Plc vs. TechnipFMC PLC | Synthomer Plc vs. Aptitude Software Group | Synthomer Plc vs. Catena Media PLC |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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