Correlation Between Symtek Automation and Cathay DJIA
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Cathay DJIA 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 Cathay DJIA 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 Cathay DJIA Inv, you can compare the effects of market volatilities on Symtek Automation and Cathay DJIA 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 Cathay DJIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Cathay DJIA.
Diversification Opportunities for Symtek Automation and Cathay DJIA
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Cathay is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Cathay DJIA Inv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay DJIA Inv 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 Cathay DJIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay DJIA Inv has no effect on the direction of Symtek Automation i.e., Symtek Automation and Cathay DJIA go up and down completely randomly.
Pair Corralation between Symtek Automation and Cathay DJIA
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 4.79 times more return on investment than Cathay DJIA. However, Symtek Automation is 4.79 times more volatile than Cathay DJIA Inv. It trades about 0.07 of its potential returns per unit of risk. Cathay DJIA Inv is currently generating about -0.31 per unit of risk. If you would invest 19,900 in Symtek Automation Asia on September 5, 2024 and sell it today you would earn a total of 1,000.00 from holding Symtek Automation Asia or generate 5.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Cathay DJIA Inv
Performance |
| Timeline |
| Symtek Automation Asia |
| Cathay DJIA Inv |
Symtek Automation and Cathay DJIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Cathay DJIA
The main advantage of trading using opposite Symtek Automation and Cathay DJIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Cathay DJIA 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 Cathay DJIA will offset losses from the drop in Cathay DJIA's long position.| Symtek Automation vs. WiseChip Semiconductor | Symtek Automation vs. Novatek Microelectronics Corp | Symtek Automation vs. Leader Electronics | Symtek Automation vs. Information Technology Total |
| Cathay DJIA vs. Ruentex Development Co | Cathay DJIA vs. Symtek Automation Asia | Cathay DJIA vs. CTCI Corp | Cathay DJIA vs. Information Technology Total |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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