Correlation Between Cathay Financial and Symtek Automation
Can any of the company-specific risk be diversified away by investing in both Cathay Financial 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 Cathay Financial and Symtek Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cathay Financial Holding and Symtek Automation Asia, you can compare the effects of market volatilities on Cathay Financial 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 Cathay Financial with a short position of Symtek Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Financial and Symtek Automation.
Diversification Opportunities for Cathay Financial and Symtek Automation
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cathay and Symtek is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Financial Holding 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 Cathay Financial 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 Cathay Financial Holding 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 Cathay Financial i.e., Cathay Financial and Symtek Automation go up and down completely randomly.
Pair Corralation between Cathay Financial and Symtek Automation
Assuming the 90 days trading horizon Cathay Financial is expected to generate 14.83 times less return on investment than Symtek Automation. But when comparing it to its historical volatility, Cathay Financial Holding is 6.21 times less risky than Symtek Automation. It trades about 0.04 of its potential returns per unit of risk. Symtek Automation Asia is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,979 in Symtek Automation Asia on September 3, 2024 and sell it today you would earn a total of 12,621 from holding Symtek Automation Asia or generate 158.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Financial Holding vs. Symtek Automation Asia
Performance |
| Timeline |
| Cathay Financial Holding |
| Symtek Automation Asia |
Cathay Financial and Symtek Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Financial and Symtek Automation
The main advantage of trading using opposite Cathay Financial and Symtek Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Financial 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.| Cathay Financial vs. Cathay Financial Holding | Cathay Financial vs. Fubon Financial Holding | Cathay Financial vs. Mercuries Life Insurance | Cathay Financial vs. Mercuries Associates Holding |
| Symtek Automation vs. Foxsemicon Integrated Technology | Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |