Correlation Between Symtek Automation and Rexon Industrial
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Rexon Industrial 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 Rexon Industrial 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 Rexon Industrial Corp, you can compare the effects of market volatilities on Symtek Automation and Rexon Industrial 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 Rexon Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Rexon Industrial.
Diversification Opportunities for Symtek Automation and Rexon Industrial
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Rexon is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Rexon Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rexon Industrial Corp 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 Rexon Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rexon Industrial Corp has no effect on the direction of Symtek Automation i.e., Symtek Automation and Rexon Industrial go up and down completely randomly.
Pair Corralation between Symtek Automation and Rexon Industrial
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 2.23 times more return on investment than Rexon Industrial. However, Symtek Automation is 2.23 times more volatile than Rexon Industrial Corp. It trades about -0.11 of its potential returns per unit of risk. Rexon Industrial Corp is currently generating about -0.24 per unit of risk. If you would invest 21,195 in Symtek Automation Asia on September 12, 2024 and sell it today you would lose (2,145) from holding Symtek Automation Asia or give up 10.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Rexon Industrial Corp
Performance |
| Timeline |
| Symtek Automation Asia |
| Rexon Industrial Corp |
Symtek Automation and Rexon Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Rexon Industrial
The main advantage of trading using opposite Symtek Automation and Rexon Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Rexon Industrial 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 Rexon Industrial will offset losses from the drop in Rexon Industrial's long position.| Symtek Automation vs. Highlight Tech | Symtek Automation vs. Ruentex Development Co | Symtek Automation vs. WiseChip Semiconductor | Symtek Automation vs. Novatek Microelectronics Corp |
| Rexon Industrial vs. Yang Ming Marine | Rexon Industrial vs. Wan Hai Lines | Rexon Industrial vs. U Ming Marine Transport | Rexon Industrial vs. Taiwan Navigation 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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