Correlation Between Silicon Power and Antec
Can any of the company-specific risk be diversified away by investing in both Silicon Power and Antec 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 Antec 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 Antec Inc, you can compare the effects of market volatilities on Silicon Power and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Power and Antec.
Diversification Opportunities for Silicon Power and Antec
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silicon and Antec is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Power Computer and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of Silicon Power i.e., Silicon Power and Antec go up and down completely randomly.
Pair Corralation between Silicon Power and Antec
Assuming the 90 days trading horizon Silicon Power Computer is expected to generate 0.68 times more return on investment than Antec. However, Silicon Power Computer is 1.48 times less risky than Antec. It trades about 0.01 of its potential returns per unit of risk. Antec Inc is currently generating about -0.24 per unit of risk. If you would invest 3,245 in Silicon Power Computer on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Silicon Power Computer or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Power Computer vs. Antec Inc
Performance |
| Timeline |
| Silicon Power Computer |
| Antec Inc |
Silicon Power and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Power and Antec
The main advantage of trading using opposite Silicon Power and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Power position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| Silicon Power vs. Orient Semiconductor Electronics | Silicon Power vs. Niko Semiconductor Co | Silicon Power vs. WIN Semiconductors | Silicon Power vs. Grand Ocean Retail |
| Antec vs. Galaxy Software Services | Antec vs. Sitronix Technology Corp | Antec vs. C Media Electronics | Antec vs. Softstar Entertainment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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