Correlation Between Symtek Automation and CTCI Corp
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and CTCI Corp 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 CTCI Corp 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 CTCI Corp, you can compare the effects of market volatilities on Symtek Automation and CTCI Corp 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 CTCI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and CTCI Corp.
Diversification Opportunities for Symtek Automation and CTCI Corp
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and CTCI is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and CTCI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CTCI Corp 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 CTCI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CTCI Corp has no effect on the direction of Symtek Automation i.e., Symtek Automation and CTCI Corp go up and down completely randomly.
Pair Corralation between Symtek Automation and CTCI Corp
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 4.02 times more return on investment than CTCI Corp. However, Symtek Automation is 4.02 times more volatile than CTCI Corp. It trades about 0.13 of its potential returns per unit of risk. CTCI Corp is currently generating about -0.38 per unit of risk. If you would invest 20,450 in Symtek Automation Asia on August 28, 2024 and sell it today you would earn a total of 2,000 from holding Symtek Automation Asia or generate 9.78% 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. CTCI Corp
Performance |
| Timeline |
| Symtek Automation Asia |
| CTCI Corp |
Symtek Automation and CTCI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and CTCI Corp
The main advantage of trading using opposite Symtek Automation and CTCI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, CTCI Corp 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 CTCI Corp will offset losses from the drop in CTCI Corp'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 |
| CTCI Corp vs. Sunny Friend Environmental | CTCI Corp vs. TTET Union Corp | CTCI Corp vs. ECOVE Environment Corp | CTCI Corp vs. Yulon Finance Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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