Correlation Between Symtek Automation and Sakura Development
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Sakura Development 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 Sakura Development 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 Sakura Development Co, you can compare the effects of market volatilities on Symtek Automation and Sakura Development 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 Sakura Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Sakura Development.
Diversification Opportunities for Symtek Automation and Sakura Development
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symtek and Sakura is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Sakura Development Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakura Development 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 Sakura Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakura Development has no effect on the direction of Symtek Automation i.e., Symtek Automation and Sakura Development go up and down completely randomly.
Pair Corralation between Symtek Automation and Sakura Development
Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the Sakura Development. In addition to that, Symtek Automation is 1.29 times more volatile than Sakura Development Co. It trades about -0.08 of its total potential returns per unit of risk. Sakura Development Co is currently generating about 0.08 per unit of volatility. If you would invest 5,000 in Sakura Development Co on September 13, 2024 and sell it today you would earn a total of 200.00 from holding Sakura Development Co or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Sakura Development Co
Performance |
| Timeline |
| Symtek Automation Asia |
| Sakura Development |
Symtek Automation and Sakura Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Sakura Development
The main advantage of trading using opposite Symtek Automation and Sakura Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Sakura Development 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 Sakura Development will offset losses from the drop in Sakura Development'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 |
| Sakura Development vs. Highwealth Construction Corp | Sakura Development vs. Huaku Development Co | Sakura Development vs. Kindom Construction Corp | Sakura Development vs. Da Cin Construction 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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