Correlation Between Symtek Automation and Powertech Industrial
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Powertech Industrial 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 Powertech Industrial 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 Powertech Industrial Co, you can compare the effects of market volatilities on Symtek Automation and Powertech Industrial 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 Powertech Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Powertech Industrial.
Diversification Opportunities for Symtek Automation and Powertech Industrial
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symtek and Powertech is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Powertech Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powertech Industrial 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 Powertech Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powertech Industrial has no effect on the direction of Symtek Automation i.e., Symtek Automation and Powertech Industrial go up and down completely randomly.
Pair Corralation between Symtek Automation and Powertech Industrial
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 0.92 times more return on investment than Powertech Industrial. However, Symtek Automation Asia is 1.09 times less risky than Powertech Industrial. It trades about 0.09 of its potential returns per unit of risk. Powertech Industrial Co is currently generating about 0.07 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Powertech Industrial Co
Performance |
| Timeline |
| Symtek Automation Asia |
| Powertech Industrial |
Symtek Automation and Powertech Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Powertech Industrial
The main advantage of trading using opposite Symtek Automation and Powertech Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Powertech Industrial 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 Powertech Industrial will offset losses from the drop in Powertech Industrial'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 |
| Powertech Industrial vs. Universal Microelectronics Co | Powertech Industrial vs. AVerMedia Technologies | Powertech Industrial vs. Symtek Automation Asia | Powertech Industrial 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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