Correlation Between WIN Semiconductors and Sitronix Technology
Can any of the company-specific risk be diversified away by investing in both WIN Semiconductors and Sitronix 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 WIN Semiconductors and Sitronix Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WIN Semiconductors and Sitronix Technology Corp, you can compare the effects of market volatilities on WIN Semiconductors and Sitronix 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 WIN Semiconductors with a short position of Sitronix Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of WIN Semiconductors and Sitronix Technology.
Diversification Opportunities for WIN Semiconductors and Sitronix Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WIN and Sitronix is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding WIN Semiconductors and Sitronix Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitronix Technology Corp and WIN Semiconductors 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 WIN Semiconductors are associated (or correlated) with Sitronix Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitronix Technology Corp has no effect on the direction of WIN Semiconductors i.e., WIN Semiconductors and Sitronix Technology go up and down completely randomly.
Pair Corralation between WIN Semiconductors and Sitronix Technology
Assuming the 90 days trading horizon WIN Semiconductors is expected to under-perform the Sitronix Technology. In addition to that, WIN Semiconductors is 1.26 times more volatile than Sitronix Technology Corp. It trades about -0.01 of its total potential returns per unit of risk. Sitronix Technology Corp is currently generating about 0.02 per unit of volatility. If you would invest 18,100 in Sitronix Technology Corp on September 4, 2024 and sell it today you would earn a total of 2,550 from holding Sitronix Technology Corp or generate 14.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WIN Semiconductors vs. Sitronix Technology Corp
Performance |
| Timeline |
| WIN Semiconductors |
| Sitronix Technology Corp |
WIN Semiconductors and Sitronix Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WIN Semiconductors and Sitronix Technology
The main advantage of trading using opposite WIN Semiconductors and Sitronix Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WIN Semiconductors position performs unexpectedly, Sitronix 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 Sitronix Technology will offset losses from the drop in Sitronix Technology's long position.| WIN Semiconductors vs. Sitronix Technology Corp | WIN Semiconductors vs. Kinsus Interconnect Technology | WIN Semiconductors vs. WiseChip Semiconductor | WIN Semiconductors vs. Novatek Microelectronics Corp |
| Sitronix Technology vs. Novatek Microelectronics Corp | Sitronix Technology vs. FocalTech Systems Co | Sitronix Technology vs. Elan Microelectronics Corp | Sitronix Technology vs. Realtek Semiconductor Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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