Correlation Between Symtek Automation and Trade Van

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

Diversification Opportunities for Symtek Automation and Trade Van

0.37

Correlation Coefficient

Symtek Automation  Trade Van

Weak diversification

The 3 months correlation between Symtek and Trade is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and Trade Van Information Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trade Van Information 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 Trade Van. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trade Van Information has no effect on the direction of Symtek Automation i.e., Symtek Automation and Trade Van go up and down completely randomly.

Pair Corralation between Symtek Automation and Trade Van

Assuming the 90 days trading horizon Symtek Automation is expected to generate 2.63 times less return on investment than Trade Van. In addition to that, Symtek Automation is 3.03 times more volatile than Trade Van Information Services. It trades about 0.02 of its total potential returns per unit of risk. Trade Van Information Services is currently generating about 0.17 per unit of volatility. If you would invest  8,040  in Trade Van Information Services on October 6, 2024 and sell it today you would earn a total of  690.00  from holding Trade Van Information Services or generate 8.58% return on investment over 90 days.

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

Symtek Automation Asia  vs.  Trade Van Information Services

Symtek Automation Asia

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Symtek Automation Asia are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Symtek Automation showed solid returns over the last few months and may actually be approaching a breakup point.

Trade Van Information

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Trade Van Information Services are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Trade Van showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Symtek Automation and Trade Van

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

The idea behind Symtek Automation Asia and Trade Van Information Services 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.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.