Correlation Between Getac Technology and Silicon Power
Can any of the company-specific risk be diversified away by investing in both Getac Technology 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 Getac Technology and Silicon Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getac Technology Corp and Silicon Power Computer, you can compare the effects of market volatilities on Getac Technology 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 Getac Technology with a short position of Silicon Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Silicon Power.
Diversification Opportunities for Getac Technology and Silicon Power
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Getac and Silicon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp 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 Getac Technology 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 Getac Technology Corp 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 Getac Technology i.e., Getac Technology and Silicon Power go up and down completely randomly.
Pair Corralation between Getac Technology and Silicon Power
Assuming the 90 days trading horizon Getac Technology Corp is expected to under-perform the Silicon Power. In addition to that, Getac Technology is 1.05 times more volatile than Silicon Power Computer. It trades about -0.15 of its total potential returns per unit of risk. Silicon Power Computer is currently generating about 0.13 per unit of volatility. If you would invest 3,145 in Silicon Power Computer on August 31, 2024 and sell it today you would earn a total of 165.00 from holding Silicon Power Computer or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getac Technology Corp vs. Silicon Power Computer
Performance |
| Timeline |
| Getac Technology Corp |
| Silicon Power Computer |
Getac Technology and Silicon Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getac Technology and Silicon Power
The main advantage of trading using opposite Getac Technology and Silicon Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology 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.| Getac Technology vs. United Microelectronics | Getac Technology vs. Winbond Electronics Corp | Getac Technology vs. Macronix International Co |
| Silicon Power vs. Quanta Computer | Silicon Power vs. Wiwynn Corp | Silicon Power vs. Getac Technology Corp | Silicon Power vs. InnoDisk |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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