Correlation Between Symtek Automation and Taiwan Hopax
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Taiwan Hopax 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 Taiwan Hopax 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 Taiwan Hopax Chemsistry, you can compare the effects of market volatilities on Symtek Automation and Taiwan Hopax 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 Taiwan Hopax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Taiwan Hopax.
Diversification Opportunities for Symtek Automation and Taiwan Hopax
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Symtek and Taiwan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Taiwan Hopax Chemsistry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Hopax Chemsistry 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 Taiwan Hopax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Hopax Chemsistry has no effect on the direction of Symtek Automation i.e., Symtek Automation and Taiwan Hopax go up and down completely randomly.
Pair Corralation between Symtek Automation and Taiwan Hopax
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.96 times more return on investment than Taiwan Hopax. However, Symtek Automation is 1.96 times more volatile than Taiwan Hopax Chemsistry. It trades about 0.16 of its potential returns per unit of risk. Taiwan Hopax Chemsistry is currently generating about 0.01 per unit of risk. If you would invest 11,589 in Symtek Automation Asia on September 1, 2024 and sell it today you would earn a total of 9,611 from holding Symtek Automation Asia or generate 82.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Taiwan Hopax Chemsistry
Performance |
| Timeline |
| Symtek Automation Asia |
| Taiwan Hopax Chemsistry |
Symtek Automation and Taiwan Hopax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Taiwan Hopax
The main advantage of trading using opposite Symtek Automation and Taiwan Hopax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Taiwan Hopax 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 Taiwan Hopax will offset losses from the drop in Taiwan Hopax'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 |
| Taiwan Hopax vs. Delta Electronics | Taiwan Hopax vs. China Steel Chemical | Taiwan Hopax 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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