Correlation Between Gemtek Technology and Silitech Technology
Can any of the company-specific risk be diversified away by investing in both Gemtek Technology and Silitech 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 Gemtek Technology and Silitech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemtek Technology Co and Silitech Technology Corp, you can compare the effects of market volatilities on Gemtek Technology and Silitech 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 Gemtek Technology with a short position of Silitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemtek Technology and Silitech Technology.
Diversification Opportunities for Gemtek Technology and Silitech Technology
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gemtek and Silitech is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Gemtek Technology Co and Silitech Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silitech Technology Corp and Gemtek 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 Gemtek Technology Co are associated (or correlated) with Silitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silitech Technology Corp has no effect on the direction of Gemtek Technology i.e., Gemtek Technology and Silitech Technology go up and down completely randomly.
Pair Corralation between Gemtek Technology and Silitech Technology
Assuming the 90 days trading horizon Gemtek Technology Co is expected to under-perform the Silitech Technology. But the stock apears to be less risky and, when comparing its historical volatility, Gemtek Technology Co is 3.05 times less risky than Silitech Technology. The stock trades about -0.01 of its potential returns per unit of risk. The Silitech Technology Corp is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,360 in Silitech Technology Corp on November 28, 2024 and sell it today you would earn a total of 465.00 from holding Silitech Technology Corp or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemtek Technology Co vs. Silitech Technology Corp
Performance |
| Timeline |
| Gemtek Technology |
| Silitech Technology Corp |
Gemtek Technology and Silitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemtek Technology and Silitech Technology
The main advantage of trading using opposite Gemtek Technology and Silitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemtek Technology position performs unexpectedly, Silitech 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 Silitech Technology will offset losses from the drop in Silitech Technology's long position.| Gemtek Technology vs. D Link Corp | Gemtek Technology vs. Sunplus Technology Co | Gemtek Technology vs. Silitech Technology Corp | Gemtek Technology vs. Zinwell |
| Silitech Technology vs. Ichia Technologies | Silitech Technology vs. Cheng Uei Precision | Silitech Technology vs. Gemtek Technology Co | Silitech Technology vs. Sunplus Technology Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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