Correlation Between Hon Hai and Symtek Automation
Can any of the company-specific risk be diversified away by investing in both Hon Hai 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 Hon Hai and Symtek Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hon Hai Precision and Symtek Automation Asia, you can compare the effects of market volatilities on Hon Hai 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 Hon Hai with a short position of Symtek Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hon Hai and Symtek Automation.
Diversification Opportunities for Hon Hai and Symtek Automation
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hon and Symtek is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Hon Hai Precision 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 Hon Hai 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 Hon Hai Precision 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 Hon Hai i.e., Hon Hai and Symtek Automation go up and down completely randomly.
Pair Corralation between Hon Hai and Symtek Automation
Assuming the 90 days trading horizon Hon Hai is expected to generate 3.58 times less return on investment than Symtek Automation. But when comparing it to its historical volatility, Hon Hai Precision is 1.25 times less risky than Symtek Automation. It trades about 0.07 of its potential returns per unit of risk. Symtek Automation Asia is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 11,442 in Symtek Automation Asia on August 28, 2024 and sell it today you would earn a total of 11,958 from holding Symtek Automation Asia or generate 104.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hon Hai Precision vs. Symtek Automation Asia
Performance |
| Timeline |
| Hon Hai Precision |
| Symtek Automation Asia |
Hon Hai and Symtek Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hon Hai and Symtek Automation
The main advantage of trading using opposite Hon Hai and Symtek Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hon Hai 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.| Hon Hai vs. United Microelectronics | Hon Hai vs. MediaTek | Hon Hai vs. Chunghwa Telecom Co | Hon Hai vs. Delta Electronics |
| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges |