Correlation Between Symtek Automation and Strong H
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Strong H 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 Strong H 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 Strong H Machinery, you can compare the effects of market volatilities on Symtek Automation and Strong H 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 Strong H. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Strong H.
Diversification Opportunities for Symtek Automation and Strong H
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symtek and Strong is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Strong H Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strong H Machinery 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 Strong H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strong H Machinery has no effect on the direction of Symtek Automation i.e., Symtek Automation and Strong H go up and down completely randomly.
Pair Corralation between Symtek Automation and Strong H
Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the Strong H. In addition to that, Symtek Automation is 2.49 times more volatile than Strong H Machinery. It trades about -0.19 of its total potential returns per unit of risk. Strong H Machinery is currently generating about 0.4 per unit of volatility. If you would invest 3,255 in Strong H Machinery on September 14, 2024 and sell it today you would earn a total of 410.00 from holding Strong H Machinery or generate 12.6% 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. Strong H Machinery
Performance |
| Timeline |
| Symtek Automation Asia |
| Strong H Machinery |
Symtek Automation and Strong H Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Strong H
The main advantage of trading using opposite Symtek Automation and Strong H positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Strong H 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 Strong H will offset losses from the drop in Strong H'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 |
| Strong H vs. Hiwin Mikrosystem Corp | Strong H vs. Ruentex Development Co | Strong H vs. Symtek Automation Asia | Strong H 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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