Correlation Between Symtek Automation and BenQ Materials

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

Diversification Opportunities for Symtek Automation and BenQ Materials

-0.05

Correlation Coefficient

Symtek Automation  BenQ Materials

Good diversification

The 3 months correlation between Symtek and BenQ is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Symtek Automation Asia and BenQ Materials Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Materials Corp 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 BenQ Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Materials Corp has no effect on the direction of Symtek Automation i.e., Symtek Automation and BenQ Materials go up and down completely randomly.

Pair Corralation between Symtek Automation and BenQ Materials

Assuming the 90 days trading horizon Symtek Automation Asia is expected to under-perform the BenQ Materials. In addition to that, Symtek Automation is 2.62 times more volatile than BenQ Materials Corp. It trades about -0.24 of its total potential returns per unit of risk. BenQ Materials Corp is currently generating about -0.1 per unit of volatility. If you would invest  2,930  in BenQ Materials Corp on December 11, 2024 and sell it today you would lose (60.00) from holding BenQ Materials Corp or give up 2.05% of portfolio value over 90 days.

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

Symtek Automation Asia  vs.  BenQ Materials Corp

Symtek Automation Asia

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Symtek Automation Asia are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Symtek Automation may actually be approaching a critical reversion point that can send shares even higher in April 2025.

BenQ Materials Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days BenQ Materials Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Symtek Automation and BenQ Materials

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

The idea behind Symtek Automation Asia and BenQ Materials Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.