Correlation Between Greatek Electronics and Syncmold Enterprise
Can any of the company-specific risk be diversified away by investing in both Greatek Electronics and Syncmold Enterprise 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 Greatek Electronics and Syncmold Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greatek Electronics and Syncmold Enterprise Corp, you can compare the effects of market volatilities on Greatek Electronics and Syncmold Enterprise 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 Greatek Electronics with a short position of Syncmold Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatek Electronics and Syncmold Enterprise.
Diversification Opportunities for Greatek Electronics and Syncmold Enterprise
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greatek and Syncmold is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Greatek Electronics and Syncmold Enterprise Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syncmold Enterprise Corp and Greatek Electronics 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 Greatek Electronics are associated (or correlated) with Syncmold Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syncmold Enterprise Corp has no effect on the direction of Greatek Electronics i.e., Greatek Electronics and Syncmold Enterprise go up and down completely randomly.
Pair Corralation between Greatek Electronics and Syncmold Enterprise
Assuming the 90 days trading horizon Greatek Electronics is expected to generate 0.73 times more return on investment than Syncmold Enterprise. However, Greatek Electronics is 1.38 times less risky than Syncmold Enterprise. It trades about -0.06 of its potential returns per unit of risk. Syncmold Enterprise Corp is currently generating about -0.31 per unit of risk. If you would invest 5,770 in Greatek Electronics on September 1, 2024 and sell it today you would lose (100.00) from holding Greatek Electronics or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greatek Electronics vs. Syncmold Enterprise Corp
Performance |
| Timeline |
| Greatek Electronics |
| Syncmold Enterprise Corp |
Greatek Electronics and Syncmold Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatek Electronics and Syncmold Enterprise
The main advantage of trading using opposite Greatek Electronics and Syncmold Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatek Electronics position performs unexpectedly, Syncmold Enterprise 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 Syncmold Enterprise will offset losses from the drop in Syncmold Enterprise's long position.| Greatek Electronics vs. King Yuan Electronics | Greatek Electronics vs. Powertech Technology | Greatek Electronics vs. Realtek Semiconductor Corp | Greatek Electronics vs. Elan Microelectronics Corp |
| Syncmold Enterprise vs. Greatek Electronics | Syncmold Enterprise vs. Chicony Electronics Co | Syncmold Enterprise vs. Huaku Development Co | Syncmold Enterprise vs. Topco Scientific 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.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |