Correlation Between Synergy Green and Indo Borax

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

By analyzing existing cross correlation between Synergy Green Industries and Indo Borax Chemicals, you can compare the effects of market volatilities on Synergy Green and Indo Borax 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 Synergy Green with a short position of Indo Borax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synergy Green and Indo Borax.

Diversification Opportunities for Synergy Green and Indo Borax

0.56

Correlation Coefficient

Synergy Green  Indo Borax

Very weak diversification

The 3 months correlation between Synergy and Indo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Synergy Green Industries and Indo Borax Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indo Borax Chemicals and Synergy Green 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 Synergy Green Industries are associated (or correlated) with Indo Borax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indo Borax Chemicals has no effect on the direction of Synergy Green i.e., Synergy Green and Indo Borax go up and down completely randomly.

Pair Corralation between Synergy Green and Indo Borax

Assuming the 90 days trading horizon Synergy Green is expected to generate 7.91 times less return on investment than Indo Borax. But when comparing it to its historical volatility, Synergy Green Industries is 1.39 times less risky than Indo Borax. It trades about 0.04 of its potential returns per unit of risk. Indo Borax Chemicals is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  18,136  in Indo Borax Chemicals on May 6, 2025 and sell it today you would earn a total of  10,089  from holding Indo Borax Chemicals or generate 55.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Synergy Green Industries  vs.  Indo Borax Chemicals

Synergy Green Industries

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Synergy Green Industries are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Synergy Green is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Indo Borax Chemicals

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Indo Borax Chemicals are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Indo Borax reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Synergy Green and Indo Borax

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

The idea behind Synergy Green Industries and Indo Borax Chemicals 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.