Correlation Between Global PMX and Symtek Automation
Can any of the company-specific risk be diversified away by investing in both Global PMX 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 Global PMX and Symtek Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global PMX Co and Symtek Automation Asia, you can compare the effects of market volatilities on Global PMX 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 Global PMX with a short position of Symtek Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global PMX and Symtek Automation.
Diversification Opportunities for Global PMX and Symtek Automation
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Global and Symtek is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Global PMX Co 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 Global PMX 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 Global PMX Co 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 Global PMX i.e., Global PMX and Symtek Automation go up and down completely randomly.
Pair Corralation between Global PMX and Symtek Automation
Assuming the 90 days trading horizon Global PMX Co is expected to under-perform the Symtek Automation. But the stock apears to be less risky and, when comparing its historical volatility, Global PMX Co is 1.13 times less risky than Symtek Automation. The stock trades about -0.17 of its potential returns per unit of risk. The Symtek Automation Asia is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 21,994 in Symtek Automation Asia on September 22, 2024 and sell it today you would lose (3,294) from holding Symtek Automation Asia or give up 14.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Global PMX Co vs. Symtek Automation Asia
Performance |
| Timeline |
| Global PMX |
| Symtek Automation Asia |
Global PMX and Symtek Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global PMX and Symtek Automation
The main advantage of trading using opposite Global PMX and Symtek Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global PMX 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.| Global PMX vs. Hota Industrial Mfg | Global PMX vs. BizLink Holding | Global PMX vs. Cub Elecparts | Global PMX vs. Hu Lane Associate |
| Symtek Automation vs. Turvo International Co | Symtek Automation vs. Sanyang Motor Co | Symtek Automation vs. Global PMX Co | Symtek Automation vs. Yulon Nissan Motor |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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