Correlation Between Silergy Corp and Aspeed Technology
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and Aspeed Technology 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 Silergy Corp and Aspeed Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silergy Corp and Aspeed Technology, you can compare the effects of market volatilities on Silergy Corp and Aspeed Technology 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 Silergy Corp with a short position of Aspeed Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and Aspeed Technology.
Diversification Opportunities for Silergy Corp and Aspeed Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Silergy and Aspeed is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and Aspeed Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aspeed Technology and Silergy Corp 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 Silergy Corp are associated (or correlated) with Aspeed Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aspeed Technology has no effect on the direction of Silergy Corp i.e., Silergy Corp and Aspeed Technology go up and down completely randomly.
Pair Corralation between Silergy Corp and Aspeed Technology
Assuming the 90 days trading horizon Silergy Corp is expected to generate 0.92 times more return on investment than Aspeed Technology. However, Silergy Corp is 1.09 times less risky than Aspeed Technology. It trades about 0.04 of its potential returns per unit of risk. Aspeed Technology is currently generating about -0.07 per unit of risk. If you would invest 42,500 in Silergy Corp on September 12, 2024 and sell it today you would earn a total of 2,050 from holding Silergy Corp or generate 4.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Silergy Corp vs. Aspeed Technology
Performance |
Timeline |
Silergy Corp |
Aspeed Technology |
Silergy Corp and Aspeed Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Silergy Corp and Aspeed Technology
The main advantage of trading using opposite Silergy Corp and Aspeed Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, Aspeed Technology 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 Aspeed Technology will offset losses from the drop in Aspeed Technology's long position.Silergy Corp vs. WIN Semiconductors | Silergy Corp vs. GlobalWafers Co | Silergy Corp vs. Novatek Microelectronics Corp | Silergy Corp vs. Ruentex Development Co |
Aspeed Technology vs. WIN Semiconductors | Aspeed Technology vs. GlobalWafers Co | Aspeed Technology vs. Novatek Microelectronics Corp | Aspeed Technology vs. Ruentex Development Co |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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