Correlation Between Symtek Automation and TTFB
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and TTFB 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 TTFB 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 TTFB Co, you can compare the effects of market volatilities on Symtek Automation and TTFB 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 TTFB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and TTFB.
Diversification Opportunities for Symtek Automation and TTFB
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Symtek and TTFB is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and TTFB Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TTFB 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 TTFB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TTFB has no effect on the direction of Symtek Automation i.e., Symtek Automation and TTFB go up and down completely randomly.
Pair Corralation between Symtek Automation and TTFB
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 9.1 times more return on investment than TTFB. However, Symtek Automation is 9.1 times more volatile than TTFB Co. It trades about 0.06 of its potential returns per unit of risk. TTFB Co is currently generating about -0.13 per unit of risk. If you would invest 19,900 in Symtek Automation Asia on September 5, 2024 and sell it today you would earn a total of 800.00 from holding Symtek Automation Asia or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Symtek Automation Asia vs. TTFB Co
Performance |
| Timeline |
| Symtek Automation Asia |
| TTFB |
Symtek Automation and TTFB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and TTFB
The main advantage of trading using opposite Symtek Automation and TTFB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, TTFB 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 TTFB will offset losses from the drop in TTFB's long position.| Symtek Automation vs. WiseChip Semiconductor | Symtek Automation vs. Novatek Microelectronics Corp | Symtek Automation vs. Leader Electronics | Symtek Automation vs. Information Technology Total |
| TTFB vs. Wowprime Corp | TTFB vs. Gourmet Master Co | TTFB vs. President Chain Store | TTFB vs. La Kaffa International |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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