Correlation Between Symtek Automation and Panion BF
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Panion BF 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 Panion BF 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 Panion BF Biotech, you can compare the effects of market volatilities on Symtek Automation and Panion BF 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 Panion BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Panion BF.
Diversification Opportunities for Symtek Automation and Panion BF
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symtek and Panion is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Panion BF Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panion BF Biotech 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 Panion BF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panion BF Biotech has no effect on the direction of Symtek Automation i.e., Symtek Automation and Panion BF go up and down completely randomly.
Pair Corralation between Symtek Automation and Panion BF
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 2.16 times more return on investment than Panion BF. However, Symtek Automation is 2.16 times more volatile than Panion BF Biotech. It trades about 0.06 of its potential returns per unit of risk. Panion BF Biotech is currently generating about 0.06 per unit of risk. If you would invest 19,900 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 700.00 from holding Symtek Automation Asia or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Panion BF Biotech
Performance |
| Timeline |
| Symtek Automation Asia |
| Panion BF Biotech |
Symtek Automation and Panion BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Panion BF
The main advantage of trading using opposite Symtek Automation and Panion BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Panion BF 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 Panion BF will offset losses from the drop in Panion BF'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 |
| Panion BF vs. Symtek Automation Asia | Panion BF vs. WiseChip Semiconductor | Panion BF vs. Novatek Microelectronics Corp | Panion BF vs. Leader Electronics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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