Correlation Between Symtek Automation and Shuang Bang
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Shuang Bang 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 Shuang Bang 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 Shuang Bang Industrial, you can compare the effects of market volatilities on Symtek Automation and Shuang Bang 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 Shuang Bang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Shuang Bang.
Diversification Opportunities for Symtek Automation and Shuang Bang
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Symtek and Shuang is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Shuang Bang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuang Bang 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 Shuang Bang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuang Bang Industrial has no effect on the direction of Symtek Automation i.e., Symtek Automation and Shuang Bang go up and down completely randomly.
Pair Corralation between Symtek Automation and Shuang Bang
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.7 times more return on investment than Shuang Bang. However, Symtek Automation is 1.7 times more volatile than Shuang Bang Industrial. It trades about 0.09 of its potential returns per unit of risk. Shuang Bang Industrial is currently generating about 0.0 per unit of risk. If you would invest 10,785 in Symtek Automation Asia on September 2, 2024 and sell it today you would earn a total of 10,415 from holding Symtek Automation Asia or generate 96.57% 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. Shuang Bang Industrial
Performance |
| Timeline |
| Symtek Automation Asia |
| Shuang Bang Industrial |
Symtek Automation and Shuang Bang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Shuang Bang
The main advantage of trading using opposite Symtek Automation and Shuang Bang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Shuang Bang 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 Shuang Bang will offset losses from the drop in Shuang Bang's long position.| Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech | Symtek Automation vs. Sitronix Technology Corp |
| Shuang Bang vs. Delta Electronics | Shuang Bang vs. China Steel Chemical | Shuang Bang vs. Hota Industrial Mfg |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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