Correlation Between Symtek Automation and Kindom Construction
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Kindom 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 Kindom 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 Kindom Construction Corp, you can compare the effects of market volatilities on Symtek Automation and Kindom 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 Kindom Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Kindom Construction.
Diversification Opportunities for Symtek Automation and Kindom Construction
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Symtek and Kindom is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Kindom Construction Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kindom Construction 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 Kindom Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kindom Construction Corp has no effect on the direction of Symtek Automation i.e., Symtek Automation and Kindom Construction go up and down completely randomly.
Pair Corralation between Symtek Automation and Kindom Construction
Assuming the 90 days trading horizon Symtek Automation is expected to generate 242.71 times less return on investment than Kindom Construction. In addition to that, Symtek Automation is 3.47 times more volatile than Kindom Construction Corp. It trades about 0.0 of its total potential returns per unit of risk. Kindom Construction Corp is currently generating about 0.66 per unit of volatility. If you would invest 5,120 in Kindom Construction Corp on November 28, 2024 and sell it today you would earn a total of 620.00 from holding Kindom Construction Corp or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Kindom Construction Corp
Performance |
| Timeline |
| Symtek Automation Asia |
| Kindom Construction Corp |
Symtek Automation and Kindom Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Kindom Construction
The main advantage of trading using opposite Symtek Automation and Kindom Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Kindom 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 Kindom Construction will offset losses from the drop in Kindom 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 |
| Kindom Construction vs. Highwealth Construction Corp | Kindom Construction vs. Cathay Real Estate | Kindom Construction vs. Huaku Development Co | Kindom Construction vs. Hung Sheng Construction |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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