Correlation Between Symtek Automation and Kunyue Development
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Kunyue Development 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 Kunyue Development 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 Kunyue Development Co, you can compare the effects of market volatilities on Symtek Automation and Kunyue Development 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 Kunyue Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Kunyue Development.
Diversification Opportunities for Symtek Automation and Kunyue Development
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symtek and Kunyue is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Kunyue Development Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunyue Development 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 Kunyue Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunyue Development has no effect on the direction of Symtek Automation i.e., Symtek Automation and Kunyue Development go up and down completely randomly.
Pair Corralation between Symtek Automation and Kunyue Development
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.07 times more return on investment than Kunyue Development. However, Symtek Automation is 1.07 times more volatile than Kunyue Development Co. It trades about 0.1 of its potential returns per unit of risk. Kunyue Development Co is currently generating about 0.09 per unit of risk. If you would invest 10,238 in Symtek Automation Asia on September 14, 2024 and sell it today you would earn a total of 8,462 from holding Symtek Automation Asia or generate 82.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Symtek Automation Asia vs. Kunyue Development Co
Performance |
| Timeline |
| Symtek Automation Asia |
| Kunyue Development |
Symtek Automation and Kunyue Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Kunyue Development
The main advantage of trading using opposite Symtek Automation and Kunyue Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Kunyue Development 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 Kunyue Development will offset losses from the drop in Kunyue Development'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 |
| Kunyue Development vs. Chong Hong Construction | Kunyue Development vs. Ruentex Development Co | Kunyue Development vs. Symtek Automation Asia | Kunyue Development 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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