Correlation Between Symtek Automation and Luo Lih
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Luo Lih 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 Luo Lih 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 Luo Lih Fen, you can compare the effects of market volatilities on Symtek Automation and Luo Lih 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 Luo Lih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Luo Lih.
Diversification Opportunities for Symtek Automation and Luo Lih
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symtek and Luo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Luo Lih Fen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luo Lih Fen 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 Luo Lih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luo Lih Fen has no effect on the direction of Symtek Automation i.e., Symtek Automation and Luo Lih go up and down completely randomly.
Pair Corralation between Symtek Automation and Luo Lih
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.63 times more return on investment than Luo Lih. However, Symtek Automation is 1.63 times more volatile than Luo Lih Fen. It trades about 0.1 of its potential returns per unit of risk. Luo Lih Fen is currently generating about -0.04 per unit of risk. If you would invest 9,348 in Symtek Automation Asia on September 12, 2024 and sell it today you would earn a total of 9,852 from holding Symtek Automation Asia or generate 105.39% 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. Luo Lih Fen
Performance |
| Timeline |
| Symtek Automation Asia |
| Luo Lih Fen |
Symtek Automation and Luo Lih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Luo Lih
The main advantage of trading using opposite Symtek Automation and Luo Lih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Luo Lih 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 Luo Lih will offset losses from the drop in Luo Lih's long position.| Symtek Automation vs. Highlight Tech | Symtek Automation vs. Ruentex Development Co | Symtek Automation vs. WiseChip Semiconductor | Symtek Automation vs. Novatek Microelectronics Corp |
| Luo Lih vs. Ruentex Development Co | Luo Lih vs. Symtek Automation Asia | Luo Lih vs. CTCI Corp | Luo Lih vs. Information Technology Total |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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