Correlation Between Symtek Automation and China Airlines
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and China Airlines 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 China Airlines 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 China Airlines, you can compare the effects of market volatilities on Symtek Automation and China Airlines 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 China Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and China Airlines.
Diversification Opportunities for Symtek Automation and China Airlines
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Symtek and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and China Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Airlines 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 China Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Airlines has no effect on the direction of Symtek Automation i.e., Symtek Automation and China Airlines go up and down completely randomly.
Pair Corralation between Symtek Automation and China Airlines
Assuming the 90 days trading horizon Symtek Automation is expected to generate 1.34 times less return on investment than China Airlines. In addition to that, Symtek Automation is 3.63 times more volatile than China Airlines. It trades about 0.08 of its total potential returns per unit of risk. China Airlines is currently generating about 0.39 per unit of volatility. If you would invest 2,260 in China Airlines on August 31, 2024 and sell it today you would earn a total of 205.00 from holding China Airlines or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Symtek Automation Asia vs. China Airlines
Performance |
| Timeline |
| Symtek Automation Asia |
| China Airlines |
Symtek Automation and China Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and China Airlines
The main advantage of trading using opposite Symtek Automation and China Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, China Airlines 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 China Airlines will offset losses from the drop in China Airlines' long position.| Symtek Automation vs. Foxsemicon Integrated Technology | Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech |
| China Airlines vs. Eva Airways Corp | China Airlines vs. Evergreen Marine Corp | China Airlines vs. Yang Ming Marine | China Airlines vs. China Steel 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |