Correlation Between Syncmold Enterprise and Greatek Electronics
Can any of the company-specific risk be diversified away by investing in both Syncmold Enterprise and Greatek Electronics 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 Syncmold Enterprise and Greatek Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syncmold Enterprise Corp and Greatek Electronics, you can compare the effects of market volatilities on Syncmold Enterprise and Greatek Electronics 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 Syncmold Enterprise with a short position of Greatek Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syncmold Enterprise and Greatek Electronics.
Diversification Opportunities for Syncmold Enterprise and Greatek Electronics
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Syncmold and Greatek is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Syncmold Enterprise Corp and Greatek Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greatek Electronics and Syncmold Enterprise 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 Syncmold Enterprise Corp are associated (or correlated) with Greatek Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greatek Electronics has no effect on the direction of Syncmold Enterprise i.e., Syncmold Enterprise and Greatek Electronics go up and down completely randomly.
Pair Corralation between Syncmold Enterprise and Greatek Electronics
Assuming the 90 days trading horizon Syncmold Enterprise Corp is expected to under-perform the Greatek Electronics. In addition to that, Syncmold Enterprise is 2.0 times more volatile than Greatek Electronics. It trades about -0.12 of its total potential returns per unit of risk. Greatek Electronics is currently generating about -0.04 per unit of volatility. If you would invest 5,850 in Greatek Electronics on August 29, 2024 and sell it today you would lose (110.00) from holding Greatek Electronics or give up 1.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syncmold Enterprise Corp vs. Greatek Electronics
Performance |
| Timeline |
| Syncmold Enterprise Corp |
| Greatek Electronics |
Syncmold Enterprise and Greatek Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syncmold Enterprise and Greatek Electronics
The main advantage of trading using opposite Syncmold Enterprise and Greatek Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syncmold Enterprise position performs unexpectedly, Greatek Electronics 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 Greatek Electronics will offset losses from the drop in Greatek Electronics' long position.| Syncmold Enterprise vs. Greatek Electronics | Syncmold Enterprise vs. Chicony Electronics Co | Syncmold Enterprise vs. Huaku Development Co | Syncmold Enterprise vs. Topco Scientific Co |
| Greatek Electronics vs. Novatek Microelectronics Corp | Greatek Electronics vs. Sitronix Technology Corp | Greatek Electronics vs. Elan Microelectronics Corp | Greatek Electronics vs. Global Unichip Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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