Correlation Between Symtek Automation and Huang Hsiang
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Huang Hsiang 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 Huang Hsiang 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 Huang Hsiang Construction, you can compare the effects of market volatilities on Symtek Automation and Huang Hsiang 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 Huang Hsiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Huang Hsiang.
Diversification Opportunities for Symtek Automation and Huang Hsiang
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symtek and Huang is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Huang Hsiang Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huang Hsiang 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 Huang Hsiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huang Hsiang Construction has no effect on the direction of Symtek Automation i.e., Symtek Automation and Huang Hsiang go up and down completely randomly.
Pair Corralation between Symtek Automation and Huang Hsiang
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.18 times more return on investment than Huang Hsiang. However, Symtek Automation is 1.18 times more volatile than Huang Hsiang Construction. It trades about 0.1 of its potential returns per unit of risk. Huang Hsiang Construction is currently generating about 0.07 per unit of risk. If you would invest 7,943 in Symtek Automation Asia on August 30, 2024 and sell it today you would earn a total of 13,807 from holding Symtek Automation Asia or generate 173.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Huang Hsiang Construction
Performance |
| Timeline |
| Symtek Automation Asia |
| Huang Hsiang Construction |
Symtek Automation and Huang Hsiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Huang Hsiang
The main advantage of trading using opposite Symtek Automation and Huang Hsiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Huang Hsiang 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 Huang Hsiang will offset losses from the drop in Huang Hsiang'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 |
| Huang Hsiang vs. Tainan Spinning Co | Huang Hsiang vs. Carnival Industrial Corp | Huang Hsiang vs. Symtek Automation Asia | Huang Hsiang 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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