Correlation Between Symtek Automation and YoungQin International
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and YoungQin 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 YoungQin 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 YoungQin International Co, you can compare the effects of market volatilities on Symtek Automation and YoungQin 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 YoungQin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and YoungQin International.
Diversification Opportunities for Symtek Automation and YoungQin International
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symtek and YoungQin is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and YoungQin International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YoungQin 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 YoungQin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YoungQin International has no effect on the direction of Symtek Automation i.e., Symtek Automation and YoungQin International go up and down completely randomly.
Pair Corralation between Symtek Automation and YoungQin International
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 3.62 times more return on investment than YoungQin International. However, Symtek Automation is 3.62 times more volatile than YoungQin International Co. It trades about 0.26 of its potential returns per unit of risk. YoungQin International Co is currently generating about 0.01 per unit of risk. If you would invest 11,800 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 8,900 from holding Symtek Automation Asia or generate 75.42% 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. YoungQin International Co
Performance |
| Timeline |
| Symtek Automation Asia |
| YoungQin International |
Symtek Automation and YoungQin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and YoungQin International
The main advantage of trading using opposite Symtek Automation and YoungQin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, YoungQin 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 YoungQin International will offset losses from the drop in YoungQin International'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 |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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