Correlation Between Synergy CHC and EDAP TMS

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

By analyzing existing cross correlation between Synergy CHC Corp and EDAP TMS SA, you can compare the effects of market volatilities on Synergy CHC and EDAP TMS 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 CHC with a short position of EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synergy CHC and EDAP TMS.

Diversification Opportunities for Synergy CHC and EDAP TMS

-0.8

Correlation Coefficient

Synergy CHC  EDAP TMS

Pay attention - limited upside

The 3 months correlation between Synergy and EDAP is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Synergy CHC Corp and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA and Synergy CHC 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 CHC Corp are associated (or correlated) with EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Synergy CHC i.e., Synergy CHC and EDAP TMS go up and down completely randomly.

Pair Corralation between Synergy CHC and EDAP TMS

Given the investment horizon of 90 days Synergy CHC Corp is expected to generate 1.71 times more return on investment than EDAP TMS. However, Synergy CHC is 1.71 times more volatile than EDAP TMS SA. It trades about 0.18 of its potential returns per unit of risk. EDAP TMS SA is currently generating about -0.14 per unit of risk. If you would invest  203.00  in Synergy CHC Corp on May 1, 2025 and sell it today you would earn a total of  162.00  from holding Synergy CHC Corp or generate 79.8% return on investment over 90 days.

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

Synergy CHC Corp  vs.  EDAP TMS SA

Synergy CHC Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Synergy CHC Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Synergy CHC reported solid returns over the last few months and may actually be approaching a breakup point.

EDAP TMS SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days EDAP TMS SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Synergy CHC and EDAP TMS

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

The idea behind Synergy CHC Corp and EDAP TMS SA 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.