Correlation Between Symtek Automation and China Steel
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and China Steel 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 China Steel 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 China Steel Corp, you can compare the effects of market volatilities on Symtek Automation and China Steel 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 China Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and China Steel.
Diversification Opportunities for Symtek Automation and China Steel
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and China is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and China Steel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Steel 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 China Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Steel Corp has no effect on the direction of Symtek Automation i.e., Symtek Automation and China Steel go up and down completely randomly.
Pair Corralation between Symtek Automation and China Steel
Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the China Steel. In addition to that, Symtek Automation is 10.62 times more volatile than China Steel Corp. It trades about -0.1 of its total potential returns per unit of risk. China Steel Corp is currently generating about -0.06 per unit of volatility. If you would invest 4,200 in China Steel Corp on September 13, 2024 and sell it today you would lose (20.00) from holding China Steel Corp or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Symtek Automation Asia vs. China Steel Corp
Performance |
| Timeline |
| Symtek Automation Asia |
| China Steel Corp |
Symtek Automation and China Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and China Steel
The main advantage of trading using opposite Symtek Automation and China Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, China Steel 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 China Steel will offset losses from the drop in China Steel'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 |
| China Steel vs. Data International Co | China Steel vs. Eagle Cold Storage | China Steel vs. Mospec Semiconductor Corp | China Steel vs. Holtek 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |