Correlation Between Symtek Automation and Song Ho
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Song Ho 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 Song Ho 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 Song Ho Industrial, you can compare the effects of market volatilities on Symtek Automation and Song Ho 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 Song Ho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Song Ho.
Diversification Opportunities for Symtek Automation and Song Ho
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Symtek and Song is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Song Ho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Song Ho Industrial 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 Song Ho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Song Ho Industrial has no effect on the direction of Symtek Automation i.e., Symtek Automation and Song Ho go up and down completely randomly.
Pair Corralation between Symtek Automation and Song Ho
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 9.58 times more return on investment than Song Ho. However, Symtek Automation is 9.58 times more volatile than Song Ho Industrial. It trades about 0.04 of its potential returns per unit of risk. Song Ho Industrial is currently generating about -0.05 per unit of risk. If you would invest 19,800 in Symtek Automation Asia on October 22, 2024 and sell it today you would earn a total of 300.00 from holding Symtek Automation Asia or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Song Ho Industrial
Performance |
| Timeline |
| Symtek Automation Asia |
| Song Ho Industrial |
Symtek Automation and Song Ho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Song Ho
The main advantage of trading using opposite Symtek Automation and Song Ho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Song Ho 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 Song Ho will offset losses from the drop in Song Ho'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 |
| Song Ho vs. China Times Publishing | Song Ho vs. Feng Ching Metal | Song Ho vs. Camellia Metal Co | Song Ho vs. Asia Metal Industries |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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