Correlation Between Symtek Automation and Great Taipei
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Great Taipei 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 Great Taipei 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 Great Taipei Gas, you can compare the effects of market volatilities on Symtek Automation and Great Taipei 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 Great Taipei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Great Taipei.
Diversification Opportunities for Symtek Automation and Great Taipei
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Great is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Great Taipei Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Taipei Gas 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 Great Taipei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Taipei Gas has no effect on the direction of Symtek Automation i.e., Symtek Automation and Great Taipei go up and down completely randomly.
Pair Corralation between Symtek Automation and Great Taipei
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 15.81 times more return on investment than Great Taipei. However, Symtek Automation is 15.81 times more volatile than Great Taipei Gas. It trades about 0.09 of its potential returns per unit of risk. Great Taipei Gas is currently generating about 0.22 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Great Taipei Gas
Performance |
| Timeline |
| Symtek Automation Asia |
| Great Taipei Gas |
Symtek Automation and Great Taipei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Great Taipei
The main advantage of trading using opposite Symtek Automation and Great Taipei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Great Taipei 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 Great Taipei will offset losses from the drop in Great Taipei'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 |
| Great Taipei vs. Taiwan Secom Co | Great Taipei vs. Taiwan Shin Kong | Great Taipei vs. Taiwan Cogeneration Corp | Great Taipei vs. Shin Hai Gas |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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