Correlation Between Symtek Automation and Maxigen Biotech
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Maxigen Biotech 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 Maxigen Biotech 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 Maxigen Biotech, you can compare the effects of market volatilities on Symtek Automation and Maxigen Biotech 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 Maxigen Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Maxigen Biotech.
Diversification Opportunities for Symtek Automation and Maxigen Biotech
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symtek and Maxigen is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Maxigen Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxigen 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 Maxigen Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxigen Biotech has no effect on the direction of Symtek Automation i.e., Symtek Automation and Maxigen Biotech go up and down completely randomly.
Pair Corralation between Symtek Automation and Maxigen Biotech
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.05 times more return on investment than Maxigen Biotech. However, Symtek Automation is 1.05 times more volatile than Maxigen Biotech. It trades about 0.09 of its potential returns per unit of risk. Maxigen Biotech is currently generating about 0.01 per unit of risk. If you would invest 7,662 in Symtek Automation Asia on September 13, 2024 and sell it today you would earn a total of 11,388 from holding Symtek Automation Asia or generate 148.63% 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. Maxigen Biotech
Performance |
| Timeline |
| Symtek Automation Asia |
| Maxigen Biotech |
Symtek Automation and Maxigen Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Maxigen Biotech
The main advantage of trading using opposite Symtek Automation and Maxigen Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Maxigen Biotech 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 Maxigen Biotech will offset losses from the drop in Maxigen Biotech'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 |
| Maxigen Biotech vs. Phytohealth Corp | Maxigen Biotech vs. Yung Zip Chemical | Maxigen Biotech vs. Ruentex Development Co | Maxigen Biotech vs. Symtek Automation Asia |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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