Correlation Between Silergy Corp and Hiwin Technologies
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and Hiwin Technologies 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 Silergy Corp and Hiwin Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silergy Corp and Hiwin Technologies Corp, you can compare the effects of market volatilities on Silergy Corp and Hiwin Technologies 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 Silergy Corp with a short position of Hiwin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and Hiwin Technologies.
Diversification Opportunities for Silergy Corp and Hiwin Technologies
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silergy and Hiwin is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and Hiwin Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiwin Technologies Corp and Silergy Corp 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 Silergy Corp are associated (or correlated) with Hiwin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiwin Technologies Corp has no effect on the direction of Silergy Corp i.e., Silergy Corp and Hiwin Technologies go up and down completely randomly.
Pair Corralation between Silergy Corp and Hiwin Technologies
Assuming the 90 days trading horizon Silergy Corp is expected to under-perform the Hiwin Technologies. In addition to that, Silergy Corp is 1.03 times more volatile than Hiwin Technologies Corp. It trades about -0.31 of its total potential returns per unit of risk. Hiwin Technologies Corp is currently generating about -0.03 per unit of volatility. If you would invest 23,600 in Hiwin Technologies Corp on September 2, 2024 and sell it today you would lose (450.00) from holding Hiwin Technologies Corp or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silergy Corp vs. Hiwin Technologies Corp
Performance |
| Timeline |
| Silergy Corp |
| Hiwin Technologies Corp |
Silergy Corp and Hiwin Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silergy Corp and Hiwin Technologies
The main advantage of trading using opposite Silergy Corp and Hiwin Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, Hiwin Technologies 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 Hiwin Technologies will offset losses from the drop in Hiwin Technologies' long position.| Silergy Corp vs. Taiwan Semiconductor Manufacturing | Silergy Corp vs. MediaTek | Silergy Corp vs. United Microelectronics | Silergy Corp vs. Novatek Microelectronics Corp |
| Hiwin Technologies vs. BES Engineering Co | Hiwin Technologies vs. Continental Holdings Corp | Hiwin Technologies vs. Kee Tai Properties | Hiwin Technologies vs. Hung Sheng Construction |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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