Correlation Between Symtek Automation and Chong Hong
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Chong Hong 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 Chong Hong 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 Chong Hong Construction, you can compare the effects of market volatilities on Symtek Automation and Chong Hong 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 Chong Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Chong Hong.
Diversification Opportunities for Symtek Automation and Chong Hong
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Symtek and Chong is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Chong Hong Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chong Hong Construction 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 Chong Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chong Hong Construction has no effect on the direction of Symtek Automation i.e., Symtek Automation and Chong Hong go up and down completely randomly.
Pair Corralation between Symtek Automation and Chong Hong
Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the Chong Hong. In addition to that, Symtek Automation is 2.41 times more volatile than Chong Hong Construction. It trades about -0.01 of its total potential returns per unit of risk. Chong Hong Construction is currently generating about 0.24 per unit of volatility. If you would invest 8,270 in Chong Hong Construction on December 11, 2024 and sell it today you would earn a total of 1,110 from holding Chong Hong Construction or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Chong Hong Construction
Performance |
| Timeline |
| Symtek Automation Asia |
| Chong Hong Construction |
Symtek Automation and Chong Hong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Chong Hong
The main advantage of trading using opposite Symtek Automation and Chong Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Chong Hong 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 Chong Hong will offset losses from the drop in Chong Hong'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 |
| Chong Hong vs. Huaku Development Co | Chong Hong vs. Farglory Land Development | Chong Hong vs. Highwealth Construction Corp | Chong Hong vs. Ruentex Development Co |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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