Correlation Between Symtek Automation and Handa Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Handa Pharmaceuticals 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 Handa Pharmaceuticals 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 Handa Pharmaceuticals, you can compare the effects of market volatilities on Symtek Automation and Handa Pharmaceuticals 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 Handa Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Handa Pharmaceuticals.
Diversification Opportunities for Symtek Automation and Handa Pharmaceuticals
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symtek and Handa is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Handa Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Handa Pharmaceuticals 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 Handa Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Handa Pharmaceuticals has no effect on the direction of Symtek Automation i.e., Symtek Automation and Handa Pharmaceuticals go up and down completely randomly.
Pair Corralation between Symtek Automation and Handa Pharmaceuticals
Assuming the 90 days trading horizon Symtek Automation is expected to generate 11.93 times less return on investment than Handa Pharmaceuticals. But when comparing it to its historical volatility, Symtek Automation Asia is 2.02 times less risky than Handa Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Handa Pharmaceuticals is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 5,220 in Handa Pharmaceuticals on October 7, 2024 and sell it today you would earn a total of 2,550 from holding Handa Pharmaceuticals or generate 48.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Handa Pharmaceuticals
Performance |
| Timeline |
| Symtek Automation Asia |
| Handa Pharmaceuticals |
Symtek Automation and Handa Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Handa Pharmaceuticals
The main advantage of trading using opposite Symtek Automation and Handa Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Handa Pharmaceuticals 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 Handa Pharmaceuticals will offset losses from the drop in Handa Pharmaceuticals' long position.| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co |
| Handa Pharmaceuticals vs. Ligitek Electronics Co | Handa Pharmaceuticals vs. LandMark Optoelectronics | Handa Pharmaceuticals vs. Taiwan Chinsan Electronic | Handa Pharmaceuticals vs. WT Microelectronics 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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