Correlation Between Silitech Technology and Sunplus Technology
Can any of the company-specific risk be diversified away by investing in both Silitech Technology and Sunplus 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 Silitech Technology and Sunplus Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silitech Technology Corp and Sunplus Technology Co, you can compare the effects of market volatilities on Silitech Technology and Sunplus 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 Silitech Technology with a short position of Sunplus Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silitech Technology and Sunplus Technology.
Diversification Opportunities for Silitech Technology and Sunplus Technology
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silitech and Sunplus is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Silitech Technology Corp and Sunplus Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunplus Technology and Silitech 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 Silitech Technology Corp are associated (or correlated) with Sunplus Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunplus Technology has no effect on the direction of Silitech Technology i.e., Silitech Technology and Sunplus Technology go up and down completely randomly.
Pair Corralation between Silitech Technology and Sunplus Technology
Assuming the 90 days trading horizon Silitech Technology Corp is expected to generate 0.64 times more return on investment than Sunplus Technology. However, Silitech Technology Corp is 1.55 times less risky than Sunplus Technology. It trades about 0.02 of its potential returns per unit of risk. Sunplus Technology Co is currently generating about 0.0 per unit of risk. If you would invest 3,420 in Silitech Technology Corp on January 22, 2025 and sell it today you would earn a total of 370.00 from holding Silitech Technology Corp or generate 10.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silitech Technology Corp vs. Sunplus Technology Co
Performance |
| Timeline |
| Silitech Technology Corp |
| Sunplus Technology |
Silitech Technology and Sunplus Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silitech Technology and Sunplus Technology
The main advantage of trading using opposite Silitech Technology and Sunplus Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silitech Technology position performs unexpectedly, Sunplus 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 Sunplus Technology will offset losses from the drop in Sunplus Technology's long position.| Silitech Technology vs. Ichia Technologies | Silitech Technology vs. Cheng Uei Precision | Silitech Technology vs. Gemtek Technology Co | Silitech Technology vs. Sunplus Technology Co |
| Sunplus Technology vs. Realtek Semiconductor Corp | Sunplus Technology vs. VIA Technologies | Sunplus Technology vs. Silicon Integrated Systems | Sunplus Technology vs. Winbond Electronics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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