Correlation Between Symtek Automation and Novatek Microelectronics
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Novatek Microelectronics 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 Novatek Microelectronics 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 Novatek Microelectronics Corp, you can compare the effects of market volatilities on Symtek Automation and Novatek Microelectronics 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 Novatek Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Novatek Microelectronics.
Diversification Opportunities for Symtek Automation and Novatek Microelectronics
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Symtek and Novatek is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Novatek Microelectronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Novatek Microelectronics 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 Novatek Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Novatek Microelectronics has no effect on the direction of Symtek Automation i.e., Symtek Automation and Novatek Microelectronics go up and down completely randomly.
Pair Corralation between Symtek Automation and Novatek Microelectronics
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.83 times more return on investment than Novatek Microelectronics. However, Symtek Automation is 1.83 times more volatile than Novatek Microelectronics Corp. It trades about 0.14 of its potential returns per unit of risk. Novatek Microelectronics Corp is currently generating about -0.1 per unit of risk. If you would invest 11,736 in Symtek Automation Asia on September 3, 2024 and sell it today you would earn a total of 9,464 from holding Symtek Automation Asia or generate 80.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Novatek Microelectronics Corp
Performance |
| Timeline |
| Symtek Automation Asia |
| Novatek Microelectronics |
Symtek Automation and Novatek Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Novatek Microelectronics
The main advantage of trading using opposite Symtek Automation and Novatek Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Novatek Microelectronics 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 Novatek Microelectronics will offset losses from the drop in Novatek Microelectronics' long position.| Symtek Automation vs. Foxsemicon Integrated Technology | Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech |
| Novatek Microelectronics vs. First Hotel Co | Novatek Microelectronics vs. BenQ Materials Corp | Novatek Microelectronics vs. FarGlory Hotel Co | Novatek Microelectronics vs. Grand Plastic Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |