Correlation Between Symtek Automation and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Chinese Maritime 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 Chinese Maritime 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 Chinese Maritime Transport, you can compare the effects of market volatilities on Symtek Automation and Chinese Maritime 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 Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Chinese Maritime.
Diversification Opportunities for Symtek Automation and Chinese Maritime
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Symtek and Chinese is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Chinese Maritime Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Maritime Tra 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 Chinese Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Maritime Tra has no effect on the direction of Symtek Automation i.e., Symtek Automation and Chinese Maritime go up and down completely randomly.
Pair Corralation between Symtek Automation and Chinese Maritime
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 2.31 times more return on investment than Chinese Maritime. However, Symtek Automation is 2.31 times more volatile than Chinese Maritime Transport. It trades about 0.06 of its potential returns per unit of risk. Chinese Maritime Transport is currently generating about 0.02 per unit of risk. If you would invest 19,900 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 700.00 from holding Symtek Automation Asia or generate 3.52% 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. Chinese Maritime Transport
Performance |
| Timeline |
| Symtek Automation Asia |
| Chinese Maritime Tra |
Symtek Automation and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Chinese Maritime
The main advantage of trading using opposite Symtek Automation and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Chinese Maritime 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 Chinese Maritime will offset losses from the drop in Chinese Maritime'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 |
| Chinese Maritime vs. Universal Microelectronics Co | Chinese Maritime vs. AVerMedia Technologies | Chinese Maritime vs. Symtek Automation Asia | Chinese Maritime vs. WiseChip Semiconductor |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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