Correlation Between Asmedia Technology and Silicon Power
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology 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 Asmedia Technology and Silicon Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Silicon Power Computer, you can compare the effects of market volatilities on Asmedia Technology 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 Asmedia Technology with a short position of Silicon Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Silicon Power.
Diversification Opportunities for Asmedia Technology and Silicon Power
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Asmedia and Silicon is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology 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 Asmedia 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 Asmedia Technology 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 Asmedia Technology i.e., Asmedia Technology and Silicon Power go up and down completely randomly.
Pair Corralation between Asmedia Technology and Silicon Power
Assuming the 90 days trading horizon Asmedia Technology is expected to under-perform the Silicon Power. In addition to that, Asmedia Technology is 1.39 times more volatile than Silicon Power Computer. It trades about -0.02 of its total potential returns per unit of risk. Silicon Power Computer is currently generating about 0.17 per unit of volatility. If you would invest 3,080 in Silicon Power Computer on September 4, 2024 and sell it today you would earn a total of 215.00 from holding Silicon Power Computer or generate 6.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. Silicon Power Computer
Performance |
| Timeline |
| Asmedia Technology |
| Silicon Power Computer |
Asmedia Technology and Silicon Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Silicon Power
The main advantage of trading using opposite Asmedia Technology and Silicon Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology 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.| Asmedia Technology vs. Taiwan Semiconductor Manufacturing | Asmedia Technology vs. Yang Ming Marine | Asmedia Technology vs. AU Optronics | Asmedia Technology vs. Innolux Corp |
| Silicon Power vs. Quanta Computer | Silicon Power vs. Elitegroup Computer Systems | Silicon Power vs. WiseChip Semiconductor | Silicon Power vs. Novatek Microelectronics 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |