Correlation Between De Licacy and Symtek Automation
Can any of the company-specific risk be diversified away by investing in both De Licacy 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 De Licacy and Symtek Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Licacy Industrial and Symtek Automation Asia, you can compare the effects of market volatilities on De Licacy 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 De Licacy with a short position of Symtek Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Licacy and Symtek Automation.
Diversification Opportunities for De Licacy and Symtek Automation
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 1464 and Symtek is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding De Licacy Industrial 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 De Licacy 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 De Licacy Industrial 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 De Licacy i.e., De Licacy and Symtek Automation go up and down completely randomly.
Pair Corralation between De Licacy and Symtek Automation
Assuming the 90 days trading horizon De Licacy is expected to generate 20.58 times less return on investment than Symtek Automation. But when comparing it to its historical volatility, De Licacy Industrial is 1.81 times less risky than Symtek Automation. It trades about 0.01 of its potential returns per unit of risk. Symtek Automation Asia is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 10,456 in Symtek Automation Asia on August 26, 2024 and sell it today you would earn a total of 12,394 from holding Symtek Automation Asia or generate 118.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Licacy Industrial vs. Symtek Automation Asia
Performance |
| Timeline |
| De Licacy Industrial |
| Symtek Automation Asia |
De Licacy and Symtek Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Licacy and Symtek Automation
The main advantage of trading using opposite De Licacy and Symtek Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Licacy 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.| De Licacy vs. Taiwan Semiconductor Manufacturing | De Licacy vs. Hon Hai Precision | De Licacy vs. MediaTek | De Licacy vs. Chunghwa Telecom Co |
| Symtek Automation vs. Foxsemicon Integrated Technology | Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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