Correlation Between Symtek Automation and Ruentex Materials
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Ruentex Materials 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 Ruentex Materials 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 Ruentex Materials Co, you can compare the effects of market volatilities on Symtek Automation and Ruentex Materials 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 Ruentex Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Ruentex Materials.
Diversification Opportunities for Symtek Automation and Ruentex Materials
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Symtek and Ruentex is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Ruentex Materials Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ruentex Materials 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 Ruentex Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ruentex Materials has no effect on the direction of Symtek Automation i.e., Symtek Automation and Ruentex Materials go up and down completely randomly.
Pair Corralation between Symtek Automation and Ruentex Materials
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.39 times more return on investment than Ruentex Materials. However, Symtek Automation is 1.39 times more volatile than Ruentex Materials Co. It trades about 0.11 of its potential returns per unit of risk. Ruentex Materials Co is currently generating about 0.03 per unit of risk. If you would invest 10,096 in Symtek Automation Asia on August 29, 2024 and sell it today you would earn a total of 11,654 from holding Symtek Automation Asia or generate 115.43% 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. Ruentex Materials Co
Performance |
| Timeline |
| Symtek Automation Asia |
| Ruentex Materials |
Symtek Automation and Ruentex Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Ruentex Materials
The main advantage of trading using opposite Symtek Automation and Ruentex Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Ruentex Materials 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 Ruentex Materials will offset losses from the drop in Ruentex Materials' long position.| Symtek Automation vs. Foxsemicon Integrated Technology | Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech |
| Ruentex Materials vs. Taiwan Cement Corp | Ruentex Materials vs. Asia Cement Corp | Ruentex Materials vs. Goldsun Building Materials | Ruentex Materials vs. Huang Hsiang Construction |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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