Correlation Between Niko Semiconductor and Silicon Power
Can any of the company-specific risk be diversified away by investing in both Niko Semiconductor 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 Niko Semiconductor and Silicon Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niko Semiconductor Co and Silicon Power Computer, you can compare the effects of market volatilities on Niko Semiconductor 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 Niko Semiconductor with a short position of Silicon Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niko Semiconductor and Silicon Power.
Diversification Opportunities for Niko Semiconductor and Silicon Power
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Niko and Silicon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Niko Semiconductor 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 Niko Semiconductor 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 Niko Semiconductor 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 Niko Semiconductor i.e., Niko Semiconductor and Silicon Power go up and down completely randomly.
Pair Corralation between Niko Semiconductor and Silicon Power
Assuming the 90 days trading horizon Niko Semiconductor Co is expected to generate 1.12 times more return on investment than Silicon Power. However, Niko Semiconductor is 1.12 times more volatile than Silicon Power Computer. It trades about -0.02 of its potential returns per unit of risk. Silicon Power Computer is currently generating about -0.13 per unit of risk. If you would invest 5,710 in Niko Semiconductor Co on September 13, 2024 and sell it today you would lose (570.00) from holding Niko Semiconductor Co or give up 9.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niko Semiconductor Co vs. Silicon Power Computer
Performance |
| Timeline |
| Niko Semiconductor |
| Silicon Power Computer |
Niko Semiconductor and Silicon Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niko Semiconductor and Silicon Power
The main advantage of trading using opposite Niko Semiconductor and Silicon Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niko Semiconductor 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.| Niko Semiconductor vs. Excelliance MOS | Niko Semiconductor vs. Sinopower Semiconductor | Niko Semiconductor vs. Advanced Power Electronics | Niko Semiconductor vs. Anpec Electronics |
| Silicon Power vs. Qisda Corp | Silicon Power vs. Quanta Computer | Silicon Power vs. Wistron Corp | Silicon Power vs. Delta Electronics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |