Correlation Between Symtek Automation and Hsing Ta
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Hsing Ta 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 Hsing Ta 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 Hsing Ta Cement, you can compare the effects of market volatilities on Symtek Automation and Hsing Ta 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 Hsing Ta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Hsing Ta.
Diversification Opportunities for Symtek Automation and Hsing Ta
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Symtek and Hsing is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Hsing Ta Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsing Ta Cement 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 Hsing Ta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsing Ta Cement has no effect on the direction of Symtek Automation i.e., Symtek Automation and Hsing Ta go up and down completely randomly.
Pair Corralation between Symtek Automation and Hsing Ta
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 8.49 times more return on investment than Hsing Ta. However, Symtek Automation is 8.49 times more volatile than Hsing Ta Cement. It trades about 0.1 of its potential returns per unit of risk. Hsing Ta Cement is currently generating about -0.03 per unit of risk. If you would invest 21,300 in Symtek Automation Asia on August 26, 2024 and sell it today you would earn a total of 1,550 from holding Symtek Automation Asia or generate 7.28% 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. Hsing Ta Cement
Performance |
| Timeline |
| Symtek Automation Asia |
| Hsing Ta Cement |
Symtek Automation and Hsing Ta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Hsing Ta
The main advantage of trading using opposite Symtek Automation and Hsing Ta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Hsing Ta 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 Hsing Ta will offset losses from the drop in Hsing Ta'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 |
| Hsing Ta vs. Cheng Shin Rubber | Hsing Ta vs. Taiwan Cement Corp | Hsing Ta vs. China Steel Chemical | Hsing Ta vs. Yulon Motor 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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