Correlation Between Symtek Automation and Khgears International
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Khgears International 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 Khgears International 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 Khgears International Limited, you can compare the effects of market volatilities on Symtek Automation and Khgears International 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 Khgears International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Khgears International.
Diversification Opportunities for Symtek Automation and Khgears International
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symtek and Khgears is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Khgears International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khgears International 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 Khgears International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khgears International has no effect on the direction of Symtek Automation i.e., Symtek Automation and Khgears International go up and down completely randomly.
Pair Corralation between Symtek Automation and Khgears International
Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the Khgears International. But the stock apears to be less risky and, when comparing its historical volatility, Symtek Automation Asia is 1.84 times less risky than Khgears International. The stock trades about -0.34 of its potential returns per unit of risk. The Khgears International Limited is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 16,300 in Khgears International Limited on September 22, 2024 and sell it today you would earn a total of 8,900 from holding Khgears International Limited or generate 54.6% 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. Khgears International Limited
Performance |
| Timeline |
| Symtek Automation Asia |
| Khgears International |
Symtek Automation and Khgears International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Khgears International
The main advantage of trading using opposite Symtek Automation and Khgears International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Khgears International 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 Khgears International will offset losses from the drop in Khgears International's long position.| Symtek Automation vs. Turvo International Co | Symtek Automation vs. Sanyang Motor Co | Symtek Automation vs. Global PMX Co | Symtek Automation vs. Yulon Nissan Motor |
| Khgears International vs. Hiwin Technologies Corp | Khgears International vs. Brighton Best International Taiwan | Khgears International vs. San Shing Fastech | Khgears International vs. QST International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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