Correlation Between Silicon Power and Chinese Gamer
Can any of the company-specific risk be diversified away by investing in both Silicon Power and Chinese Gamer 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 Silicon Power and Chinese Gamer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Power Computer and Chinese Gamer International, you can compare the effects of market volatilities on Silicon Power and Chinese Gamer 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 Silicon Power with a short position of Chinese Gamer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Power and Chinese Gamer.
Diversification Opportunities for Silicon Power and Chinese Gamer
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Silicon and Chinese is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Power Computer and Chinese Gamer International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Gamer Intern and Silicon Power 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 Silicon Power Computer are associated (or correlated) with Chinese Gamer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Gamer Intern has no effect on the direction of Silicon Power i.e., Silicon Power and Chinese Gamer go up and down completely randomly.
Pair Corralation between Silicon Power and Chinese Gamer
Assuming the 90 days trading horizon Silicon Power Computer is expected to generate 1.24 times more return on investment than Chinese Gamer. However, Silicon Power is 1.24 times more volatile than Chinese Gamer International. It trades about 0.03 of its potential returns per unit of risk. Chinese Gamer International is currently generating about 0.0 per unit of risk. If you would invest 2,735 in Silicon Power Computer on August 31, 2024 and sell it today you would earn a total of 575.00 from holding Silicon Power Computer or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Silicon Power Computer vs. Chinese Gamer International
Performance |
| Timeline |
| Silicon Power Computer |
| Chinese Gamer Intern |
Silicon Power and Chinese Gamer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Power and Chinese Gamer
The main advantage of trading using opposite Silicon Power and Chinese Gamer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Power position performs unexpectedly, Chinese Gamer 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 Chinese Gamer will offset losses from the drop in Chinese Gamer's long position.| Silicon Power vs. Quanta Computer | Silicon Power vs. Wiwynn Corp | Silicon Power vs. Getac Technology Corp | Silicon Power vs. InnoDisk |
| Chinese Gamer vs. Grand Pacific Petrochemical | Chinese Gamer vs. Silicon Power Computer | Chinese Gamer vs. Evermore Chemical Industry | Chinese Gamer vs. Chung Hwa Food |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |