Correlation Between Tainan Spinning and Symtek Automation
Can any of the company-specific risk be diversified away by investing in both Tainan Spinning and Symtek Automation 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 Tainan Spinning and Symtek Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tainan Spinning Co and Symtek Automation Asia, you can compare the effects of market volatilities on Tainan Spinning and Symtek Automation 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 Tainan Spinning with a short position of Symtek Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tainan Spinning and Symtek Automation.
Diversification Opportunities for Tainan Spinning and Symtek Automation
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tainan and Symtek is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tainan Spinning Co and Symtek Automation Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symtek Automation Asia and Tainan Spinning 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 Tainan Spinning Co are associated (or correlated) with Symtek Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symtek Automation Asia has no effect on the direction of Tainan Spinning i.e., Tainan Spinning and Symtek Automation go up and down completely randomly.
Pair Corralation between Tainan Spinning and Symtek Automation
Assuming the 90 days trading horizon Tainan Spinning is expected to generate 86.72 times less return on investment than Symtek Automation. But when comparing it to its historical volatility, Tainan Spinning Co is 4.45 times less risky than Symtek Automation. It trades about 0.0 of its potential returns per unit of risk. Symtek Automation Asia is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 20,100 in Symtek Automation Asia on September 1, 2024 and sell it today you would earn a total of 1,100 from holding Symtek Automation Asia or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tainan Spinning Co vs. Symtek Automation Asia
Performance |
| Timeline |
| Tainan Spinning |
| Symtek Automation Asia |
Tainan Spinning and Symtek Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tainan Spinning and Symtek Automation
The main advantage of trading using opposite Tainan Spinning and Symtek Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tainan Spinning position performs unexpectedly, Symtek Automation 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 Symtek Automation will offset losses from the drop in Symtek Automation's long position.| Tainan Spinning vs. Lealea Enterprise Co | Tainan Spinning vs. China Petrochemical Development | Tainan Spinning vs. Li Peng Enterprise | Tainan Spinning vs. Oriental Union Chemical |
| Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co | Symtek Automation vs. C Sun Manufacturing |
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 CEOs Directory module to screen CEOs from public companies around the world.
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