Correlation Between Symtek Automation and Space Shuttle
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Space Shuttle 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 Space Shuttle 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 Space Shuttle Hi Tech, you can compare the effects of market volatilities on Symtek Automation and Space Shuttle 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 Space Shuttle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Space Shuttle.
Diversification Opportunities for Symtek Automation and Space Shuttle
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Symtek and Space is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Space Shuttle Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Shuttle Hi 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 Space Shuttle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Shuttle Hi has no effect on the direction of Symtek Automation i.e., Symtek Automation and Space Shuttle go up and down completely randomly.
Pair Corralation between Symtek Automation and Space Shuttle
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 0.88 times more return on investment than Space Shuttle. However, Symtek Automation Asia is 1.14 times less risky than Space Shuttle. It trades about 0.08 of its potential returns per unit of risk. Space Shuttle Hi Tech is currently generating about 0.02 per unit of risk. If you would invest 10,848 in Symtek Automation Asia on September 12, 2024 and sell it today you would earn a total of 8,352 from holding Symtek Automation Asia or generate 76.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Space Shuttle Hi Tech
Performance |
| Timeline |
| Symtek Automation Asia |
| Space Shuttle Hi |
Symtek Automation and Space Shuttle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Space Shuttle
The main advantage of trading using opposite Symtek Automation and Space Shuttle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Space Shuttle 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 Space Shuttle will offset losses from the drop in Space Shuttle'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 |
| Space Shuttle vs. Yang Ming Marine | Space Shuttle vs. Wan Hai Lines | Space Shuttle vs. U Ming Marine Transport | Space Shuttle vs. Taiwan Navigation Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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