Correlation Between Symtek Automation and Cyberlink

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

Diversification Opportunities for Symtek Automation and Cyberlink

-0.07

Correlation Coefficient

Symtek Automation  Cyberlink

Good diversification

The 3 months correlation between Symtek and Cyberlink is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Cyberlink Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlink 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 Cyberlink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlink has no effect on the direction of Symtek Automation i.e., Symtek Automation and Cyberlink go up and down completely randomly.

Pair Corralation between Symtek Automation and Cyberlink

Assuming the 90 days trading horizon Symtek Automation is expected to generate 2.64 times less return on investment than Cyberlink. In addition to that, Symtek Automation is 1.46 times more volatile than Cyberlink Co. It trades about 0.04 of its total potential returns per unit of risk. Cyberlink Co is currently generating about 0.15 per unit of volatility. If you would invest  8,830  in Cyberlink Co on October 22, 2024 and sell it today you would earn a total of  540.00  from holding Cyberlink Co or generate 6.12% 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.  Cyberlink Co

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 fairly stable basic indicators, Symtek Automation is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Cyberlink

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cyberlink Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Cyberlink 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 Symtek Automation and Cyberlink

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

The idea behind Symtek Automation Asia and Cyberlink Co 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.