Correlation Between Symtek Automation and Giant Manufacturing
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Giant Manufacturing 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 Giant Manufacturing 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 Giant Manufacturing Co, you can compare the effects of market volatilities on Symtek Automation and Giant Manufacturing 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 Giant Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Giant Manufacturing.
Diversification Opportunities for Symtek Automation and Giant Manufacturing
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Giant is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Giant Manufacturing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giant Manufacturing 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 Giant Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giant Manufacturing has no effect on the direction of Symtek Automation i.e., Symtek Automation and Giant Manufacturing go up and down completely randomly.
Pair Corralation between Symtek Automation and Giant Manufacturing
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.6 times more return on investment than Giant Manufacturing. However, Symtek Automation is 1.6 times more volatile than Giant Manufacturing Co. It trades about 0.27 of its potential returns per unit of risk. Giant Manufacturing Co is currently generating about -0.29 per unit of risk. If you would invest 12,650 in Symtek Automation Asia on August 28, 2024 and sell it today you would earn a total of 9,800 from holding Symtek Automation Asia or generate 77.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symtek Automation Asia vs. Giant Manufacturing Co
Performance |
| Timeline |
| Symtek Automation Asia |
| Giant Manufacturing |
Symtek Automation and Giant Manufacturing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Giant Manufacturing
The main advantage of trading using opposite Symtek Automation and Giant Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Giant Manufacturing 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 Giant Manufacturing will offset losses from the drop in Giant Manufacturing's long position.| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. C Sun Manufacturing |
| Giant Manufacturing vs. Taiwan Semiconductor Manufacturing | Giant Manufacturing vs. Hon Hai Precision | Giant Manufacturing vs. MediaTek | Giant Manufacturing vs. Chunghwa Telecom Co |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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