Correlation Between Hi Lai and Silicon Power
Can any of the company-specific risk be diversified away by investing in both Hi Lai and Silicon Power 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 Hi Lai and Silicon Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hi Lai Foods Co and Silicon Power Computer, you can compare the effects of market volatilities on Hi Lai and Silicon Power 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 Hi Lai with a short position of Silicon Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Lai and Silicon Power.
Diversification Opportunities for Hi Lai and Silicon Power
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between 1268 and Silicon is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hi Lai Foods Co and Silicon Power Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Power Computer and Hi Lai 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 Hi Lai Foods Co are associated (or correlated) with Silicon Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Power Computer has no effect on the direction of Hi Lai i.e., Hi Lai and Silicon Power go up and down completely randomly.
Pair Corralation between Hi Lai and Silicon Power
Assuming the 90 days trading horizon Hi Lai Foods Co is expected to generate 0.43 times more return on investment than Silicon Power. However, Hi Lai Foods Co is 2.34 times less risky than Silicon Power. It trades about 0.03 of its potential returns per unit of risk. Silicon Power Computer is currently generating about -0.1 per unit of risk. If you would invest 15,100 in Hi Lai Foods Co on October 23, 2024 and sell it today you would earn a total of 100.00 from holding Hi Lai Foods Co or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hi Lai Foods Co vs. Silicon Power Computer
Performance |
| Timeline |
| Hi Lai Foods |
| Silicon Power Computer |
Hi Lai and Silicon Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hi Lai and Silicon Power
The main advantage of trading using opposite Hi Lai and Silicon Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Lai position performs unexpectedly, Silicon Power 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 Power will offset losses from the drop in Silicon Power's long position.| Hi Lai vs. Silicon Power Computer | Hi Lai vs. Dimension Computer Technology | Hi Lai vs. Elitegroup Computer Systems | Hi Lai vs. Jetwell Computer Co |
| Silicon Power vs. Wei Chuan Foods | Silicon Power vs. Wonderful Hi Tech Co | Silicon Power vs. Union Insurance Co | Silicon Power vs. Far EasTone Telecommunications |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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