Correlation Between Symtek Automation and Fuh Hwa
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Fuh Hwa 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 Fuh Hwa 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 Fuh Hwa FTSE, you can compare the effects of market volatilities on Symtek Automation and Fuh Hwa 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 Fuh Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Fuh Hwa.
Diversification Opportunities for Symtek Automation and Fuh Hwa
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Fuh is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Fuh Hwa FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuh Hwa FTSE 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 Fuh Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuh Hwa FTSE has no effect on the direction of Symtek Automation i.e., Symtek Automation and Fuh Hwa go up and down completely randomly.
Pair Corralation between Symtek Automation and Fuh Hwa
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 5.18 times more return on investment than Fuh Hwa. However, Symtek Automation is 5.18 times more volatile than Fuh Hwa FTSE. It trades about 0.09 of its potential returns per unit of risk. Fuh Hwa FTSE is currently generating about 0.18 per unit of risk. If you would invest 20,450 in Symtek Automation Asia on August 30, 2024 and sell it today you would earn a total of 1,300 from holding Symtek Automation Asia or generate 6.36% 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. Fuh Hwa FTSE
Performance |
| Timeline |
| Symtek Automation Asia |
| Fuh Hwa FTSE |
Symtek Automation and Fuh Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Fuh Hwa
The main advantage of trading using opposite Symtek Automation and Fuh Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Fuh Hwa 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 Fuh Hwa will offset losses from the drop in Fuh Hwa's long position.| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co |
| Fuh Hwa vs. Symtek Automation Asia | Fuh Hwa vs. CTCI Corp | Fuh Hwa vs. Information Technology Total | Fuh Hwa vs. Kinko Optical Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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