Correlation Between Greatek Electronics and Synnex Technology
Can any of the company-specific risk be diversified away by investing in both Greatek Electronics and Synnex Technology 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 Synnex Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greatek Electronics and Synnex Technology International, you can compare the effects of market volatilities on Greatek Electronics and Synnex Technology 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 Synnex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatek Electronics and Synnex Technology.
Diversification Opportunities for Greatek Electronics and Synnex Technology
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greatek and Synnex is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Greatek Electronics and Synnex Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex Technology 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 Synnex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Technology has no effect on the direction of Greatek Electronics i.e., Greatek Electronics and Synnex Technology go up and down completely randomly.
Pair Corralation between Greatek Electronics and Synnex Technology
Assuming the 90 days trading horizon Greatek Electronics is expected to under-perform the Synnex Technology. But the stock apears to be less risky and, when comparing its historical volatility, Greatek Electronics is 1.11 times less risky than Synnex Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Synnex Technology International is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6,810 in Synnex Technology International on August 24, 2024 and sell it today you would earn a total of 840.00 from holding Synnex Technology International or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greatek Electronics vs. Synnex Technology Internationa
Performance |
| Timeline |
| Greatek Electronics |
| Synnex Technology |
Greatek Electronics and Synnex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatek Electronics and Synnex Technology
The main advantage of trading using opposite Greatek Electronics and Synnex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatek Electronics position performs unexpectedly, Synnex Technology 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 Synnex Technology will offset losses from the drop in Synnex Technology's long position.| Greatek Electronics vs. Novatek Microelectronics Corp | Greatek Electronics vs. MediaTek | Greatek Electronics vs. Quanta Computer | Greatek Electronics vs. United Microelectronics |
| Synnex Technology vs. Compal Electronics | Synnex Technology vs. Quanta Computer | Synnex Technology vs. Inventec Corp | Synnex Technology vs. Lite On Technology 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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