Correlation Between Symtek Automation and Fubon SP
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Fubon SP 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 Fubon SP 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 Fubon SP Preferred, you can compare the effects of market volatilities on Symtek Automation and Fubon SP 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 Fubon SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Fubon SP.
Diversification Opportunities for Symtek Automation and Fubon SP
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Symtek and Fubon is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Fubon SP Preferred in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubon SP Preferred 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 Fubon SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubon SP Preferred has no effect on the direction of Symtek Automation i.e., Symtek Automation and Fubon SP go up and down completely randomly.
Pair Corralation between Symtek Automation and Fubon SP
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 6.68 times more return on investment than Fubon SP. However, Symtek Automation is 6.68 times more volatile than Fubon SP Preferred. It trades about 0.1 of its potential returns per unit of risk. Fubon SP Preferred is currently generating about 0.18 per unit of risk. If you would invest 19,900 in Symtek Automation Asia on September 3, 2024 and sell it today you would earn a total of 1,300 from holding Symtek Automation Asia or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Fubon SP Preferred
Performance |
| Timeline |
| Symtek Automation Asia |
| Fubon SP Preferred |
Symtek Automation and Fubon SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Fubon SP
The main advantage of trading using opposite Symtek Automation and Fubon SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Fubon SP 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 Fubon SP will offset losses from the drop in Fubon SP's long position.| Symtek Automation vs. Foxsemicon Integrated Technology | Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech |
| Fubon SP vs. Cathay Taiwan 5G | Fubon SP vs. Ruentex Development Co | Fubon SP vs. Symtek Automation Asia | Fubon SP vs. CTCI Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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