Correlation Between Symtek Automation and Globe Union
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Globe Union 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 Globe Union 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 Globe Union Industrial, you can compare the effects of market volatilities on Symtek Automation and Globe Union 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 Globe Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Globe Union.
Diversification Opportunities for Symtek Automation and Globe Union
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Symtek and Globe is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Globe Union Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Union Industrial 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 Globe Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Union Industrial has no effect on the direction of Symtek Automation i.e., Symtek Automation and Globe Union go up and down completely randomly.
Pair Corralation between Symtek Automation and Globe Union
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.75 times more return on investment than Globe Union. However, Symtek Automation is 1.75 times more volatile than Globe Union Industrial. It trades about 0.06 of its potential returns per unit of risk. Globe Union Industrial is currently generating about -0.25 per unit of risk. If you would invest 19,900 in Symtek Automation Asia on September 4, 2024 and sell it today you would earn a total of 700.00 from holding Symtek Automation Asia or generate 3.52% 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. Globe Union Industrial
Performance |
| Timeline |
| Symtek Automation Asia |
| Globe Union Industrial |
Symtek Automation and Globe Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symtek Automation and Globe Union
The main advantage of trading using opposite Symtek Automation and Globe Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Globe Union 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 Globe Union will offset losses from the drop in Globe Union'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 |
| Globe Union vs. Universal Microelectronics Co | Globe Union vs. AVerMedia Technologies | Globe Union vs. Symtek Automation Asia | Globe Union vs. WiseChip Semiconductor |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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