Correlation Between Symtek Automation and Yuanta SP

Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Yuanta SP 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 Yuanta SP 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 Yuanta SP GSCI, you can compare the effects of market volatilities on Symtek Automation and Yuanta SP 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 Yuanta SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Yuanta SP.

Diversification Opportunities for Symtek Automation and Yuanta SP

0.59

Correlation Coefficient

Symtek Automation  Yuanta SP

Very weak diversification

The 3 months correlation between Symtek and Yuanta is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Yuanta SP GSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanta SP GSCI 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 Yuanta SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanta SP GSCI has no effect on the direction of Symtek Automation i.e., Symtek Automation and Yuanta SP go up and down completely randomly.

Pair Corralation between Symtek Automation and Yuanta SP

Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 3.26 times more return on investment than Yuanta SP. However, Symtek Automation is 3.26 times more volatile than Yuanta SP GSCI. It trades about 0.06 of its potential returns per unit of risk. Yuanta SP GSCI is currently generating about -0.15 per unit of risk. If you would invest  19,900  in Symtek Automation Asia on September 5, 2024 and sell it today you would earn a total of  800.00  from holding Symtek Automation Asia or generate 4.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

Symtek Automation Asia  vs.  Yuanta SP GSCI

Symtek Automation Asia

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Symtek Automation Asia are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Symtek Automation showed solid returns over the last few months and may actually be approaching a breakup point.

Yuanta SP GSCI

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Yuanta SP GSCI are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Yuanta SP is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Symtek Automation and Yuanta SP

The main advantage of trading using opposite Symtek Automation and Yuanta SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Yuanta SP 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 Yuanta SP will offset losses from the drop in Yuanta SP's long position.

The idea behind Symtek Automation Asia and Yuanta SP GSCI pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.