Correlation Between Symtek Automation and Gem Terminal
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Gem Terminal 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 Gem Terminal 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 Gem Terminal Industry, you can compare the effects of market volatilities on Symtek Automation and Gem Terminal 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 Gem Terminal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Gem Terminal.
Diversification Opportunities for Symtek Automation and Gem Terminal
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symtek and Gem is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Gem Terminal Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Terminal Industry 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 Gem Terminal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Terminal Industry has no effect on the direction of Symtek Automation i.e., Symtek Automation and Gem Terminal go up and down completely randomly.
Pair Corralation between Symtek Automation and Gem Terminal
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 0.97 times more return on investment than Gem Terminal. However, Symtek Automation Asia is 1.04 times less risky than Gem Terminal. It trades about 0.11 of its potential returns per unit of risk. Gem Terminal Industry is currently generating about 0.0 per unit of risk. If you would invest 10,269 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 10,431 from holding Symtek Automation Asia or generate 101.58% 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. Gem Terminal Industry
Performance |
| Timeline |
| Symtek Automation Asia |
| Gem Terminal Industry |
Symtek Automation and Gem Terminal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Gem Terminal
The main advantage of trading using opposite Symtek Automation and Gem Terminal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Gem Terminal 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 Gem Terminal will offset losses from the drop in Gem Terminal'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 |
| Gem Terminal vs. Universal Microelectronics Co | Gem Terminal vs. AVerMedia Technologies | Gem Terminal vs. Symtek Automation Asia | Gem Terminal 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |