Correlation Between Symtek Automation and Chainqui Construction
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Chainqui Construction 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 Chainqui Construction 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 Chainqui Construction Development, you can compare the effects of market volatilities on Symtek Automation and Chainqui Construction 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 Chainqui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Chainqui Construction.
Diversification Opportunities for Symtek Automation and Chainqui Construction
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Chainqui is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Chainqui Construction Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chainqui Construction 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 Chainqui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chainqui Construction has no effect on the direction of Symtek Automation i.e., Symtek Automation and Chainqui Construction go up and down completely randomly.
Pair Corralation between Symtek Automation and Chainqui Construction
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.21 times more return on investment than Chainqui Construction. However, Symtek Automation is 1.21 times more volatile than Chainqui Construction Development. It trades about 0.11 of its potential returns per unit of risk. Chainqui Construction Development is currently generating about 0.03 per unit of risk. If you would invest 10,286 in Symtek Automation Asia on August 26, 2024 and sell it today you would earn a total of 12,564 from holding Symtek Automation Asia or generate 122.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Chainqui Construction Developm
Performance |
| Timeline |
| Symtek Automation Asia |
| Chainqui Construction |
Symtek Automation and Chainqui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Chainqui Construction
The main advantage of trading using opposite Symtek Automation and Chainqui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Chainqui Construction 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 Chainqui Construction will offset losses from the drop in Chainqui Construction'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 |
| Chainqui Construction vs. Hung Sheng Construction | Chainqui Construction vs. Kee Tai Properties | Chainqui Construction vs. BES Engineering Co | Chainqui Construction vs. Zinwell |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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