Correlation Between Symtek Automation and Level Biotechnology
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Level Biotechnology 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 Level Biotechnology 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 Level Biotechnology, you can compare the effects of market volatilities on Symtek Automation and Level Biotechnology 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 Level Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Level Biotechnology.
Diversification Opportunities for Symtek Automation and Level Biotechnology
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Symtek and Level is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Level Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Level Biotechnology 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 Level Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Level Biotechnology has no effect on the direction of Symtek Automation i.e., Symtek Automation and Level Biotechnology go up and down completely randomly.
Pair Corralation between Symtek Automation and Level Biotechnology
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 2.36 times more return on investment than Level Biotechnology. However, Symtek Automation is 2.36 times more volatile than Level Biotechnology. It trades about 0.09 of its potential returns per unit of risk. Level Biotechnology is currently generating about 0.04 per unit of risk. If you would invest 8,006 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 12,594 from holding Symtek Automation Asia or generate 157.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Symtek Automation Asia vs. Level Biotechnology
Performance |
| Timeline |
| Symtek Automation Asia |
| Level Biotechnology |
Symtek Automation and Level Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Level Biotechnology
The main advantage of trading using opposite Symtek Automation and Level Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Level Biotechnology 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 Level Biotechnology will offset losses from the drop in Level Biotechnology'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 |
| Level Biotechnology vs. China Steel Corp | Level Biotechnology vs. Sheng Yu Steel | Level Biotechnology vs. U Ming Marine Transport | Level Biotechnology vs. Dadi Early Childhood Education |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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