Correlation Between Symtek Automation and Group Up
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Group Up 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 Group Up 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 Group Up Industrial, you can compare the effects of market volatilities on Symtek Automation and Group Up 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 Group Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Group Up.
Diversification Opportunities for Symtek Automation and Group Up
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symtek and Group is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Group Up Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Up 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 Group Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Up Industrial has no effect on the direction of Symtek Automation i.e., Symtek Automation and Group Up go up and down completely randomly.
Pair Corralation between Symtek Automation and Group Up
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.79 times more return on investment than Group Up. However, Symtek Automation is 1.79 times more volatile than Group Up Industrial. It trades about 0.09 of its potential returns per unit of risk. Group Up Industrial is currently generating about -0.2 per unit of risk. If you would invest 20,450 in Symtek Automation Asia on August 30, 2024 and sell it today you would earn a total of 1,300 from holding Symtek Automation Asia or generate 6.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Symtek Automation Asia vs. Group Up Industrial
Performance |
| Timeline |
| Symtek Automation Asia |
| Group Up Industrial |
Symtek Automation and Group Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Group Up
The main advantage of trading using opposite Symtek Automation and Group Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Group Up 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 Group Up will offset losses from the drop in Group Up's long position.| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech Co |
| Group Up vs. Sports Gear Co | Group Up vs. Chinese Gamer International | Group Up vs. International Games System | Group Up vs. Chain Chon Industrial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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