Correlation Between MyHealthChecked Plc and Synthomer Plc

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

By analyzing existing cross correlation between MyHealthChecked Plc and Synthomer plc, you can compare the effects of market volatilities on MyHealthChecked Plc 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 MyHealthChecked Plc with a short position of Synthomer Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and Synthomer Plc.

Diversification Opportunities for MyHealthChecked Plc and Synthomer Plc

-0.48

Correlation Coefficient

MyHealthChecked Plc  Synthomer Plc

Very good diversification

The 3 months correlation between MyHealthChecked and Synthomer is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Synthomer plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synthomer plc and MyHealthChecked Plc 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 MyHealthChecked Plc 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 MyHealthChecked Plc i.e., MyHealthChecked Plc and Synthomer Plc go up and down completely randomly.

Pair Corralation between MyHealthChecked Plc and Synthomer Plc

Assuming the 90 days trading horizon MyHealthChecked Plc is expected to under-perform the Synthomer Plc. In addition to that, MyHealthChecked Plc is 1.15 times more volatile than Synthomer plc. It trades about -0.01 of its total potential returns per unit of risk. Synthomer plc is currently generating about 0.07 per unit of volatility. If you would invest  8,380  in Synthomer plc on April 24, 2025 and sell it today you would earn a total of  1,260  from holding Synthomer plc or generate 15.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

MyHealthChecked Plc  vs.  Synthomer plc

MyHealthChecked Plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MyHealthChecked Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, MyHealthChecked Plc is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Synthomer plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Synthomer plc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Synthomer Plc unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MyHealthChecked Plc and Synthomer Plc

The main advantage of trading using opposite MyHealthChecked Plc and Synthomer Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyHealthChecked Plc 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 MyHealthChecked Plc 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.

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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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.