Correlation Between Symtek Automation and Tong Yang

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

Diversification Opportunities for Symtek Automation and Tong Yang

-0.21

Correlation Coefficient

Symtek Automation  Tong Yang

Very good diversification

The 3 months correlation between Symtek and Tong is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Tong Yang Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tong Yang Industry 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 Tong Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tong Yang Industry has no effect on the direction of Symtek Automation i.e., Symtek Automation and Tong Yang go up and down completely randomly.

Pair Corralation between Symtek Automation and Tong Yang

Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the Tong Yang. In addition to that, Symtek Automation is 1.74 times more volatile than Tong Yang Industry. It trades about -0.04 of its total potential returns per unit of risk. Tong Yang Industry is currently generating about 0.06 per unit of volatility. If you would invest  10,500  in Tong Yang Industry on October 21, 2024 and sell it today you would earn a total of  650.00  from holding Tong Yang Industry or generate 6.19% return on investment over 90 days.

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

Symtek Automation Asia  vs.  Tong Yang Industry

Symtek Automation Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Symtek Automation Asia 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.

Tong Yang Industry

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tong Yang Industry are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Tong Yang may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Symtek Automation and Tong Yang

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

The idea behind Symtek Automation Asia and Tong Yang Industry 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.