Correlation Between Level Biotechnology and Symtek Automation
Can any of the company-specific risk be diversified away by investing in both Level Biotechnology 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 Level Biotechnology and Symtek Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Level Biotechnology and Symtek Automation Asia, you can compare the effects of market volatilities on Level Biotechnology 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 Level Biotechnology with a short position of Symtek Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Level Biotechnology and Symtek Automation.
Diversification Opportunities for Level Biotechnology and Symtek Automation
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Level and Symtek is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Level Biotechnology 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 Level Biotechnology 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 Level Biotechnology 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 Level Biotechnology i.e., Level Biotechnology and Symtek Automation go up and down completely randomly.
Pair Corralation between Level Biotechnology and Symtek Automation
Assuming the 90 days trading horizon Level Biotechnology is expected to under-perform the Symtek Automation. But the stock apears to be less risky and, when comparing its historical volatility, Level Biotechnology is 5.45 times less risky than Symtek Automation. The stock trades about -0.02 of its potential returns per unit of risk. The Symtek Automation Asia is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 12,150 in Symtek Automation Asia on September 3, 2024 and sell it today you would earn a total of 9,050 from holding Symtek Automation Asia or generate 74.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Level Biotechnology vs. Symtek Automation Asia
Performance |
| Timeline |
| Level Biotechnology |
| Symtek Automation Asia |
Level Biotechnology and Symtek Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Level Biotechnology and Symtek Automation
The main advantage of trading using opposite Level Biotechnology and Symtek Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Level Biotechnology 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.| Level Biotechnology vs. Symtek Automation Asia | Level Biotechnology vs. WiseChip Semiconductor | Level Biotechnology vs. Novatek Microelectronics Corp | Level Biotechnology vs. Leader Electronics |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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