Correlation Between Sysgration and FineTek
Can any of the company-specific risk be diversified away by investing in both Sysgration and FineTek 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 Sysgration and FineTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sysgration and FineTek Co, you can compare the effects of market volatilities on Sysgration and FineTek 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 Sysgration with a short position of FineTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sysgration and FineTek.
Diversification Opportunities for Sysgration and FineTek
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sysgration and FineTek is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sysgration and FineTek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FineTek and Sysgration 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 Sysgration are associated (or correlated) with FineTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FineTek has no effect on the direction of Sysgration i.e., Sysgration and FineTek go up and down completely randomly.
Pair Corralation between Sysgration and FineTek
Assuming the 90 days trading horizon Sysgration is expected to generate 1.23 times less return on investment than FineTek. But when comparing it to its historical volatility, Sysgration is 1.26 times less risky than FineTek. It trades about 0.04 of its potential returns per unit of risk. FineTek Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,300 in FineTek Co on August 28, 2024 and sell it today you would earn a total of 3,100 from holding FineTek Co or generate 27.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sysgration vs. FineTek Co
Performance |
| Timeline |
| Sysgration |
| FineTek |
Sysgration and FineTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sysgration and FineTek
The main advantage of trading using opposite Sysgration and FineTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sysgration position performs unexpectedly, FineTek 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 FineTek will offset losses from the drop in FineTek's long position.| Sysgration vs. I Jang Industrial | Sysgration vs. Meiloon Industrial Co | Sysgration vs. Newretail Co | Sysgration vs. Dadi Early Childhood Education |
| FineTek vs. Integrated Service Technology | FineTek vs. ASE Industrial Holding | FineTek vs. eMemory Technology | FineTek vs. King Yuan Electronics |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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