Correlation Between Symtek Automation and Cleanaway
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Cleanaway 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 Cleanaway 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 Cleanaway Co, you can compare the effects of market volatilities on Symtek Automation and Cleanaway 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 Cleanaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Cleanaway.
Diversification Opportunities for Symtek Automation and Cleanaway
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Symtek and Cleanaway is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Cleanaway Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway 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 Cleanaway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway has no effect on the direction of Symtek Automation i.e., Symtek Automation and Cleanaway go up and down completely randomly.
Pair Corralation between Symtek Automation and Cleanaway
Assuming the 90 days trading horizon Symtek Automation Asia is expected to generate 4.94 times more return on investment than Cleanaway. However, Symtek Automation is 4.94 times more volatile than Cleanaway Co. It trades about 0.2 of its potential returns per unit of risk. Cleanaway Co is currently generating about -0.04 per unit of risk. If you would invest 12,479 in Symtek Automation Asia on September 12, 2024 and sell it today you would earn a total of 6,721 from holding Symtek Automation Asia or generate 53.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Symtek Automation Asia vs. Cleanaway Co
Performance |
Timeline |
Symtek Automation Asia |
Cleanaway |
Symtek Automation and Cleanaway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Symtek Automation and Cleanaway
The main advantage of trading using opposite Symtek Automation and Cleanaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Cleanaway 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 Cleanaway will offset losses from the drop in Cleanaway's long position.Symtek Automation vs. Highlight Tech | Symtek Automation vs. Ruentex Development Co | Symtek Automation vs. WiseChip Semiconductor | Symtek Automation vs. Novatek Microelectronics Corp |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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