Correlation Between Symtek Automation and Cathay Real
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Cathay Real 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 Cathay Real 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 Cathay Real Estate, you can compare the effects of market volatilities on Symtek Automation and Cathay Real 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 Cathay Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Cathay Real.
Diversification Opportunities for Symtek Automation and Cathay Real
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Cathay is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Cathay Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Real Estate 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 Cathay Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Real Estate has no effect on the direction of Symtek Automation i.e., Symtek Automation and Cathay Real go up and down completely randomly.
Pair Corralation between Symtek Automation and Cathay Real
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.07 times more return on investment than Cathay Real. However, Symtek Automation is 1.07 times more volatile than Cathay Real Estate. It trades about 0.09 of its potential returns per unit of risk. Cathay Real Estate is currently generating about 0.06 per unit of risk. If you would invest 10,690 in Symtek Automation Asia on August 27, 2024 and sell it today you would earn a total of 12,160 from holding Symtek Automation Asia or generate 113.75% 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. Cathay Real Estate
Performance |
| Timeline |
| Symtek Automation Asia |
| Cathay Real Estate |
Symtek Automation and Cathay Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Cathay Real
The main advantage of trading using opposite Symtek Automation and Cathay Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Cathay Real 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 Cathay Real will offset losses from the drop in Cathay Real's long position.| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. C Sun Manufacturing |
| Cathay Real vs. Chainqui Construction Development | Cathay Real vs. Zinwell | Cathay Real vs. Symtek Automation Asia | Cathay Real vs. CTCI Corp |
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.
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