Correlation Between Fittech and Symtek Automation
Can any of the company-specific risk be diversified away by investing in both Fittech and Symtek Automation 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 Fittech and Symtek Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fittech Co and Symtek Automation Asia, you can compare the effects of market volatilities on Fittech and Symtek Automation 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 Fittech with a short position of Symtek Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fittech and Symtek Automation.
Diversification Opportunities for Fittech and Symtek Automation
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fittech and Symtek is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Fittech Co and Symtek Automation Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symtek Automation Asia and Fittech 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 Fittech Co are associated (or correlated) with Symtek Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symtek Automation Asia has no effect on the direction of Fittech i.e., Fittech and Symtek Automation go up and down completely randomly.
Pair Corralation between Fittech and Symtek Automation
Assuming the 90 days trading horizon Fittech Co is expected to generate 0.99 times more return on investment than Symtek Automation. However, Fittech Co is 1.01 times less risky than Symtek Automation. It trades about 0.11 of its potential returns per unit of risk. Symtek Automation Asia is currently generating about 0.08 per unit of risk. If you would invest 16,413 in Fittech Co on August 25, 2024 and sell it today you would earn a total of 1,337 from holding Fittech Co or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fittech Co vs. Symtek Automation Asia
Performance |
| Timeline |
| Fittech |
| Symtek Automation Asia |
Fittech and Symtek Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fittech and Symtek Automation
The main advantage of trading using opposite Fittech and Symtek Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fittech position performs unexpectedly, Symtek Automation 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 Symtek Automation will offset losses from the drop in Symtek Automation's long position.| Fittech vs. Golden Friends | Fittech vs. Sunonwealth Electric Machine | Fittech vs. Rechi Precision Co | Fittech vs. C Sun Manufacturing |
| Symtek Automation vs. Golden Friends | Symtek Automation vs. Sunonwealth Electric Machine | Symtek Automation vs. Rechi Precision Co | Symtek Automation vs. Fittech 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |