Correlation Between Symtek Automation and CKM Building
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and CKM Building 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 CKM Building 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 CKM Building Material, you can compare the effects of market volatilities on Symtek Automation and CKM Building 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 CKM Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and CKM Building.
Diversification Opportunities for Symtek Automation and CKM Building
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Symtek and CKM is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and CKM Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CKM Building Material 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 CKM Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CKM Building Material has no effect on the direction of Symtek Automation i.e., Symtek Automation and CKM Building go up and down completely randomly.
Pair Corralation between Symtek Automation and CKM Building
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.05 times more return on investment than CKM Building. However, Symtek Automation is 1.05 times more volatile than CKM Building Material. It trades about 0.09 of its potential returns per unit of risk. CKM Building Material is currently generating about 0.09 per unit of risk. If you would invest 8,006 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 12,594 from holding Symtek Automation Asia or generate 157.31% 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. CKM Building Material
Performance |
| Timeline |
| Symtek Automation Asia |
| CKM Building Material |
Symtek Automation and CKM Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and CKM Building
The main advantage of trading using opposite Symtek Automation and CKM Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, CKM Building 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 CKM Building will offset losses from the drop in CKM Building's long position.| Symtek Automation vs. Foxsemicon Integrated Technology | Symtek Automation vs. United Integrated Services | Symtek Automation vs. Ennostar | Symtek Automation vs. All Ring Tech |
| CKM Building vs. Sunspring Metal Corp | CKM Building vs. Champion Building Materials | CKM Building vs. Ruentex Development Co | CKM Building vs. Symtek Automation Asia |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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