Correlation Between Symtek Automation and De Licacy
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and De Licacy 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 De Licacy 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 De Licacy Industrial, you can compare the effects of market volatilities on Symtek Automation and De Licacy 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 De Licacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and De Licacy.
Diversification Opportunities for Symtek Automation and De Licacy
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Symtek and 1464 is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and De Licacy Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Licacy Industrial 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 De Licacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Licacy Industrial has no effect on the direction of Symtek Automation i.e., Symtek Automation and De Licacy go up and down completely randomly.
Pair Corralation between Symtek Automation and De Licacy
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.81 times more return on investment than De Licacy. However, Symtek Automation is 1.81 times more volatile than De Licacy Industrial. It trades about 0.12 of its potential returns per unit of risk. De Licacy Industrial is currently generating about 0.06 per unit of risk. If you would invest 11,736 in Symtek Automation Asia on August 29, 2024 and sell it today you would earn a total of 10,014 from holding Symtek Automation Asia or generate 85.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. De Licacy Industrial
Performance |
| Timeline |
| Symtek Automation Asia |
| De Licacy Industrial |
Symtek Automation and De Licacy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and De Licacy
The main advantage of trading using opposite Symtek Automation and De Licacy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, De Licacy 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 De Licacy will offset losses from the drop in De Licacy'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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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