Correlation Between Symtek Automation and Kaulin Mfg
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Kaulin Mfg 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 Kaulin Mfg 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 Kaulin Mfg, you can compare the effects of market volatilities on Symtek Automation and Kaulin Mfg 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 Kaulin Mfg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Kaulin Mfg.
Diversification Opportunities for Symtek Automation and Kaulin Mfg
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Symtek and Kaulin is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Kaulin Mfg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaulin Mfg 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 Kaulin Mfg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaulin Mfg has no effect on the direction of Symtek Automation i.e., Symtek Automation and Kaulin Mfg go up and down completely randomly.
Pair Corralation between Symtek Automation and Kaulin Mfg
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 1.26 times more return on investment than Kaulin Mfg. However, Symtek Automation is 1.26 times more volatile than Kaulin Mfg. It trades about 0.23 of its potential returns per unit of risk. Kaulin Mfg is currently generating about 0.09 per unit of risk. If you would invest 11,839 in Symtek Automation Asia on September 10, 2024 and sell it today you would earn a total of 7,761 from holding Symtek Automation Asia or generate 65.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Symtek Automation Asia vs. Kaulin Mfg
Performance |
Timeline |
Symtek Automation Asia |
Kaulin Mfg |
Symtek Automation and Kaulin Mfg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Symtek Automation and Kaulin Mfg
The main advantage of trading using opposite Symtek Automation and Kaulin Mfg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Kaulin Mfg 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 Kaulin Mfg will offset losses from the drop in Kaulin Mfg'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 |
Kaulin Mfg vs. Tainan Enterprises Co | Kaulin Mfg vs. Nien Hsing Textile | Kaulin Mfg vs. De Licacy Industrial | Kaulin Mfg vs. Kwong Fong Industries |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |