Correlation Between Symtek Automation and Double Bond
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Double Bond 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 Double Bond 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 Double Bond Chemical, you can compare the effects of market volatilities on Symtek Automation and Double Bond 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 Double Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Double Bond.
Diversification Opportunities for Symtek Automation and Double Bond
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Symtek and Double is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Double Bond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Double Bond Chemical 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 Double Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Double Bond Chemical has no effect on the direction of Symtek Automation i.e., Symtek Automation and Double Bond go up and down completely randomly.
Pair Corralation between Symtek Automation and Double Bond
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 3.1 times more return on investment than Double Bond. However, Symtek Automation is 3.1 times more volatile than Double Bond Chemical. It trades about 0.09 of its potential returns per unit of risk. Double Bond Chemical is currently generating about -0.18 per unit of risk. If you would invest 20,450 in Symtek Automation Asia on August 30, 2024 and sell it today you would earn a total of 1,300 from holding Symtek Automation Asia or generate 6.36% 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. Double Bond Chemical
Performance |
| Timeline |
| Symtek Automation Asia |
| Double Bond Chemical |
Symtek Automation and Double Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Double Bond
The main advantage of trading using opposite Symtek Automation and Double Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Double Bond 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 Double Bond will offset losses from the drop in Double Bond's long position.| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co |
| Double Bond vs. Nantex Industry Co | Double Bond vs. Chong Hong Construction | Double Bond vs. Cleanaway Co | Double Bond vs. Symtek Automation Asia |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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