Correlation Between Symtek Automation and Evergreen International
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Evergreen International 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 Evergreen International 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 Evergreen International Storage, you can compare the effects of market volatilities on Symtek Automation and Evergreen International 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 Evergreen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Evergreen International.
Diversification Opportunities for Symtek Automation and Evergreen International
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Symtek and Evergreen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Evergreen International Storag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evergreen International 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 Evergreen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evergreen International has no effect on the direction of Symtek Automation i.e., Symtek Automation and Evergreen International go up and down completely randomly.
Pair Corralation between Symtek Automation and Evergreen International
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.46 times more return on investment than Evergreen International. However, Symtek Automation is 1.46 times more volatile than Evergreen International Storage. It trades about 0.08 of its potential returns per unit of risk. Evergreen International Storage is currently generating about 0.02 per unit of risk. If you would invest 10,541 in Symtek Automation Asia on September 12, 2024 and sell it today you would earn a total of 8,659 from holding Symtek Automation Asia or generate 82.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Evergreen International Storag
Performance |
| Timeline |
| Symtek Automation Asia |
| Evergreen International |
Symtek Automation and Evergreen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Evergreen International
The main advantage of trading using opposite Symtek Automation and Evergreen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Evergreen International 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 Evergreen International will offset losses from the drop in Evergreen International'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 |
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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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