Correlation Between Symtek Automation and Auras Technology
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Auras Technology 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 Auras Technology 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 Auras Technology Co, you can compare the effects of market volatilities on Symtek Automation and Auras Technology 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 Auras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Auras Technology.
Diversification Opportunities for Symtek Automation and Auras Technology
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symtek and Auras is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Auras Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auras Technology 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 Auras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auras Technology has no effect on the direction of Symtek Automation i.e., Symtek Automation and Auras Technology go up and down completely randomly.
Pair Corralation between Symtek Automation and Auras Technology
Assuming the 90 days trading horizon Symtek Automation is expected to generate 1.68 times less return on investment than Auras Technology. But when comparing it to its historical volatility, Symtek Automation Asia is 1.51 times less risky than Auras Technology. It trades about 0.08 of its potential returns per unit of risk. Auras Technology Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 28,522 in Auras Technology Co on September 12, 2024 and sell it today you would earn a total of 40,878 from holding Auras Technology Co or generate 143.32% 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. Auras Technology Co
Performance |
| Timeline |
| Symtek Automation Asia |
| Auras Technology |
Symtek Automation and Auras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Auras Technology
The main advantage of trading using opposite Symtek Automation and Auras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Auras Technology 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 Auras Technology will offset losses from the drop in Auras Technology's long position.| Symtek Automation vs. Highlight Tech | Symtek Automation vs. Ruentex Development Co | Symtek Automation vs. WiseChip Semiconductor | Symtek Automation vs. Novatek Microelectronics Corp |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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