Correlation Between Symtek Automation and Champion Building
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Champion Building 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 Champion Building 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 Champion Building Materials, you can compare the effects of market volatilities on Symtek Automation and Champion Building 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 Champion Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Champion Building.
Diversification Opportunities for Symtek Automation and Champion Building
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Champion is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Champion Building Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Building 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 Champion Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Building has no effect on the direction of Symtek Automation i.e., Symtek Automation and Champion Building go up and down completely randomly.
Pair Corralation between Symtek Automation and Champion Building
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.07 times more return on investment than Champion Building. However, Symtek Automation is 1.07 times more volatile than Champion Building Materials. It trades about 0.09 of its potential returns per unit of risk. Champion Building Materials is currently generating about 0.02 per unit of risk. If you would invest 8,078 in Symtek Automation Asia on September 5, 2024 and sell it today you would earn a total of 12,622 from holding Symtek Automation Asia or generate 156.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Champion Building Materials
Performance |
| Timeline |
| Symtek Automation Asia |
| Champion Building |
Symtek Automation and Champion Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Champion Building
The main advantage of trading using opposite Symtek Automation and Champion Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Champion Building 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 Champion Building will offset losses from the drop in Champion Building's long position.| Symtek Automation vs. WiseChip Semiconductor | Symtek Automation vs. Novatek Microelectronics Corp | Symtek Automation vs. Leader Electronics | Symtek Automation vs. Information Technology Total |
| Champion Building vs. Universal Microelectronics Co | Champion Building vs. AVerMedia Technologies | Champion Building vs. Symtek Automation Asia | Champion Building vs. WiseChip Semiconductor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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