Correlation Between Symtek Automation and SYN Tech
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and SYN Tech 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 SYN Tech 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 SYN Tech Chem Pharm, you can compare the effects of market volatilities on Symtek Automation and SYN Tech 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 SYN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and SYN Tech.
Diversification Opportunities for Symtek Automation and SYN Tech
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symtek and SYN is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and SYN Tech Chem Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN Tech Chem 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 SYN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN Tech Chem has no effect on the direction of Symtek Automation i.e., Symtek Automation and SYN Tech go up and down completely randomly.
Pair Corralation between Symtek Automation and SYN Tech
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 3.92 times more return on investment than SYN Tech. However, Symtek Automation is 3.92 times more volatile than SYN Tech Chem Pharm. It trades about 0.08 of its potential returns per unit of risk. SYN Tech Chem Pharm is currently generating about 0.09 per unit of risk. If you would invest 21,750 in Symtek Automation Asia on August 25, 2024 and sell it today you would earn a total of 1,100 from holding Symtek Automation Asia or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. SYN Tech Chem Pharm
Performance |
| Timeline |
| Symtek Automation Asia |
| SYN Tech Chem |
Symtek Automation and SYN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and SYN Tech
The main advantage of trading using opposite Symtek Automation and SYN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, SYN Tech 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 SYN Tech will offset losses from the drop in SYN Tech's long position.| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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