Correlation Between Symtek Automation and YuantaP Shares
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and YuantaP Shares 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 Symtek Automation and YuantaP Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symtek Automation Asia and YuantaP shares SSE50, you can compare the effects of market volatilities on Symtek Automation and YuantaP Shares 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 Symtek Automation with a short position of YuantaP Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and YuantaP Shares.
Diversification Opportunities for Symtek Automation and YuantaP Shares
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Symtek and YuantaP is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and YuantaP shares SSE50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YuantaP shares SSE50 and Symtek Automation 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 Symtek Automation Asia are associated (or correlated) with YuantaP Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YuantaP shares SSE50 has no effect on the direction of Symtek Automation i.e., Symtek Automation and YuantaP Shares go up and down completely randomly.
Pair Corralation between Symtek Automation and YuantaP Shares
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.87 times more return on investment than YuantaP Shares. However, Symtek Automation is 1.87 times more volatile than YuantaP shares SSE50. It trades about 0.12 of its potential returns per unit of risk. YuantaP shares SSE50 is currently generating about 0.03 per unit of risk. If you would invest 9,810 in Symtek Automation Asia on September 1, 2024 and sell it today you would earn a total of 11,390 from holding Symtek Automation Asia or generate 116.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. YuantaP shares SSE50
Performance |
| Timeline |
| Symtek Automation Asia |
| YuantaP shares SSE50 |
Symtek Automation and YuantaP Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and YuantaP Shares
The main advantage of trading using opposite Symtek Automation and YuantaP Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, YuantaP Shares 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 YuantaP Shares will offset losses from the drop in YuantaP Shares' long position.| Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co | Symtek Automation vs. C Sun Manufacturing |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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