Correlation Between Syntek Semiconductor and I Jang

Can any of the company-specific risk be diversified away by investing in both Syntek Semiconductor and I Jang 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 Syntek Semiconductor and I Jang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Syntek Semiconductor Co and I Jang Industrial, you can compare the effects of market volatilities on Syntek Semiconductor and I Jang 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 Syntek Semiconductor with a short position of I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntek Semiconductor and I Jang.

Diversification Opportunities for Syntek Semiconductor and I Jang

0.47

Correlation Coefficient

Syntek Semiconductor  I Jang

Very weak diversification

The 3 months correlation between Syntek and 8342 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Syntek Semiconductor Co and I Jang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Jang Industrial and Syntek Semiconductor 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 Syntek Semiconductor Co are associated (or correlated) with I Jang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Jang Industrial has no effect on the direction of Syntek Semiconductor i.e., Syntek Semiconductor and I Jang go up and down completely randomly.

Pair Corralation between Syntek Semiconductor and I Jang

Assuming the 90 days trading horizon Syntek Semiconductor Co is expected to under-perform the I Jang. In addition to that, Syntek Semiconductor is 1.14 times more volatile than I Jang Industrial. It trades about -0.15 of its total potential returns per unit of risk. I Jang Industrial is currently generating about -0.01 per unit of volatility. If you would invest  8,960  in I Jang Industrial on September 15, 2024 and sell it today you would lose (110.00) from holding I Jang Industrial or give up 1.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Syntek Semiconductor Co  vs.  I Jang Industrial

Syntek Semiconductor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Syntek Semiconductor Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

I Jang Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days I Jang Industrial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, I Jang is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Syntek Semiconductor and I Jang

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

The idea behind Syntek Semiconductor Co and I Jang Industrial 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.