Correlation Between INTEGR SILICON and Silicon Motion

Can any of the company-specific risk be diversified away by investing in both INTEGR SILICON and Silicon Motion 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 INTEGR SILICON and Silicon Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INTEGR SILICON SOL and Silicon Motion Technology, you can compare the effects of market volatilities on INTEGR SILICON and Silicon Motion 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 INTEGR SILICON with a short position of Silicon Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEGR SILICON and Silicon Motion.

Diversification Opportunities for INTEGR SILICON and Silicon Motion

0.0

Correlation Coefficient

INTEGR SILICON  Silicon Motion

Pay attention - limited upside

The 3 months correlation between INTEGR and Silicon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding INTEGR SILICON SOL and Silicon Motion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Motion Technology and INTEGR SILICON 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 INTEGR SILICON SOL are associated (or correlated) with Silicon Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Motion Technology has no effect on the direction of INTEGR SILICON i.e., INTEGR SILICON and Silicon Motion go up and down completely randomly.

Pair Corralation between INTEGR SILICON and Silicon Motion

If you would invest  5,217  in Silicon Motion Technology on September 4, 2024 and sell it today you would lose (117.00) from holding Silicon Motion Technology or give up 2.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

INTEGR SILICON SOL  vs.  Silicon Motion Technology

INTEGR SILICON SOL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTEGR SILICON SOL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTEGR SILICON is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Silicon Motion Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Silicon Motion Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Silicon Motion is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with INTEGR SILICON and Silicon Motion

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

The idea behind INTEGR SILICON SOL and Silicon Motion Technology 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.