Correlation Between Symtek Automation and Ingentec
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Ingentec 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 Ingentec 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 Ingentec, you can compare the effects of market volatilities on Symtek Automation and Ingentec 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 Ingentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Ingentec.
Diversification Opportunities for Symtek Automation and Ingentec
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symtek and Ingentec is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Ingentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingentec 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 Ingentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingentec has no effect on the direction of Symtek Automation i.e., Symtek Automation and Ingentec go up and down completely randomly.
Pair Corralation between Symtek Automation and Ingentec
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.7 times more return on investment than Ingentec. However, Symtek Automation is 1.7 times more volatile than Ingentec. It trades about 0.08 of its potential returns per unit of risk. Ingentec is currently generating about -0.15 per unit of risk. If you would invest 20,100 in Symtek Automation Asia on September 1, 2024 and sell it today you would earn a total of 1,100 from holding Symtek Automation Asia or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Ingentec
Performance |
| Timeline |
| Symtek Automation Asia |
| Ingentec |
Symtek Automation and Ingentec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Ingentec
The main advantage of trading using opposite Symtek Automation and Ingentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Ingentec 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 Ingentec will offset losses from the drop in Ingentec's long position.| Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co | Symtek Automation vs. C Sun Manufacturing |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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