Correlation Between Synnex Technology and Zinwell
Can any of the company-specific risk be diversified away by investing in both Synnex Technology and Zinwell 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 Synnex Technology and Zinwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synnex Technology International and Zinwell, you can compare the effects of market volatilities on Synnex Technology and Zinwell 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 Synnex Technology with a short position of Zinwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synnex Technology and Zinwell.
Diversification Opportunities for Synnex Technology and Zinwell
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Synnex and Zinwell is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Synnex Technology Internationa and Zinwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinwell and Synnex Technology 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 Synnex Technology International are associated (or correlated) with Zinwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinwell has no effect on the direction of Synnex Technology i.e., Synnex Technology and Zinwell go up and down completely randomly.
Pair Corralation between Synnex Technology and Zinwell
Assuming the 90 days trading horizon Synnex Technology International is expected to generate 0.62 times more return on investment than Zinwell. However, Synnex Technology International is 1.62 times less risky than Zinwell. It trades about 0.15 of its potential returns per unit of risk. Zinwell is currently generating about -0.05 per unit of risk. If you would invest 7,220 in Synnex Technology International on August 28, 2024 and sell it today you would earn a total of 250.00 from holding Synnex Technology International or generate 3.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synnex Technology Internationa vs. Zinwell
Performance |
| Timeline |
| Synnex Technology |
| Zinwell |
Synnex Technology and Zinwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synnex Technology and Zinwell
The main advantage of trading using opposite Synnex Technology and Zinwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synnex Technology position performs unexpectedly, Zinwell 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 Zinwell will offset losses from the drop in Zinwell's long position.| Synnex Technology vs. Compal Electronics | Synnex Technology vs. Quanta Computer | Synnex Technology vs. Inventec Corp | Synnex Technology vs. Lite On Technology Corp |
| Zinwell vs. Clevo Co | Zinwell vs. D Link Corp | Zinwell vs. Cheng Uei Precision | Zinwell vs. Senao International Co |
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.
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