Correlation Between Symtek Automation and Tong Tai
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Tong Tai 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 Tong Tai 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 Tong Tai Machine Tool, you can compare the effects of market volatilities on Symtek Automation and Tong Tai 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 Tong Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Tong Tai.
Diversification Opportunities for Symtek Automation and Tong Tai
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Symtek and Tong is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Tong Tai Machine Tool in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tong Tai Machine 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 Tong Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tong Tai Machine has no effect on the direction of Symtek Automation i.e., Symtek Automation and Tong Tai go up and down completely randomly.
Pair Corralation between Symtek Automation and Tong Tai
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.06 times more return on investment than Tong Tai. However, Symtek Automation is 1.06 times more volatile than Tong Tai Machine Tool. It trades about 0.06 of its potential returns per unit of risk. Tong Tai Machine Tool is currently generating about 0.03 per unit of risk. If you would invest 19,900 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 700.00 from holding Symtek Automation Asia or generate 3.52% 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. Tong Tai Machine Tool
Performance |
| Timeline |
| Symtek Automation Asia |
| Tong Tai Machine |
Symtek Automation and Tong Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Tong Tai
The main advantage of trading using opposite Symtek Automation and Tong Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Tong Tai 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 Tong Tai will offset losses from the drop in Tong Tai'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 |
| Tong Tai vs. Universal Microelectronics Co | Tong Tai vs. AVerMedia Technologies | Tong Tai vs. Symtek Automation Asia | Tong Tai 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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