Correlation Between Symtek Automation and Chung Hsin
Can any of the company-specific risk be diversified away by investing in both Symtek Automation and Chung Hsin 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 Chung Hsin 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 Chung Hsin Electric Machinery, you can compare the effects of market volatilities on Symtek Automation and Chung Hsin 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 Chung Hsin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symtek Automation and Chung Hsin.
Diversification Opportunities for Symtek Automation and Chung Hsin
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Symtek and Chung is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Chung Hsin Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chung Hsin Electric 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 Chung Hsin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chung Hsin Electric has no effect on the direction of Symtek Automation i.e., Symtek Automation and Chung Hsin go up and down completely randomly.
Pair Corralation between Symtek Automation and Chung Hsin
Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the Chung Hsin. In addition to that, Symtek Automation is 1.18 times more volatile than Chung Hsin Electric Machinery. It trades about -0.24 of its total potential returns per unit of risk. Chung Hsin Electric Machinery is currently generating about -0.05 per unit of volatility. If you would invest 14,950 in Chung Hsin Electric Machinery on December 10, 2024 and sell it today you would lose (400.00) from holding Chung Hsin Electric Machinery or give up 2.68% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Symtek Automation Asia vs. Chung Hsin Electric Machinery
Performance |
Timeline |
Symtek Automation Asia |
Chung Hsin Electric |
Symtek Automation and Chung Hsin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Symtek Automation and Chung Hsin
The main advantage of trading using opposite Symtek Automation and Chung Hsin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symtek Automation position performs unexpectedly, Chung Hsin 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 Chung Hsin will offset losses from the drop in Chung Hsin'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 |
Chung Hsin vs. TECO Electric Machinery | Chung Hsin vs. Fortune Electric Co | Chung Hsin vs. Taiwan Cement Corp | Chung Hsin vs. Walsin Lihwa Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |