Correlation Between Symtek Automation and Excelsior Medical
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Excelsior Medical 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 Excelsior Medical 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 Excelsior Medical Co, you can compare the effects of market volatilities on Symtek Automation and Excelsior Medical 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 Excelsior Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Excelsior Medical.
Diversification Opportunities for Symtek Automation and Excelsior Medical
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symtek and Excelsior is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Excelsior Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelsior Medical 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 Excelsior Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelsior Medical has no effect on the direction of Symtek Automation i.e., Symtek Automation and Excelsior Medical go up and down completely randomly.
Pair Corralation between Symtek Automation and Excelsior Medical
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 3.28 times more return on investment than Excelsior Medical. However, Symtek Automation is 3.28 times more volatile than Excelsior Medical Co. It trades about 0.1 of its potential returns per unit of risk. Excelsior Medical Co is currently generating about 0.01 per unit of risk. If you would invest 9,348 in Symtek Automation Asia on September 12, 2024 and sell it today you would earn a total of 9,852 from holding Symtek Automation Asia or generate 105.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Excelsior Medical Co
Performance |
| Timeline |
| Symtek Automation Asia |
| Excelsior Medical |
Symtek Automation and Excelsior Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Excelsior Medical
The main advantage of trading using opposite Symtek Automation and Excelsior Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Excelsior Medical 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 Excelsior Medical will offset losses from the drop in Excelsior Medical'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 |
| Excelsior Medical vs. Apex Biotechnology Corp | Excelsior Medical vs. Ruentex Development Co | Excelsior Medical vs. WiseChip Semiconductor | Excelsior Medical vs. Novatek Microelectronics Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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