Correlation Between Silergy Corp and President Chain
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and President Chain 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 President Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silergy Corp and President Chain Store, you can compare the effects of market volatilities on Silergy Corp and President Chain 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 President Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and President Chain.
Diversification Opportunities for Silergy Corp and President Chain
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Silergy and President is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and President Chain Store in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on President Chain Store 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 President Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of President Chain Store has no effect on the direction of Silergy Corp i.e., Silergy Corp and President Chain go up and down completely randomly.
Pair Corralation between Silergy Corp and President Chain
Assuming the 90 days trading horizon Silergy Corp is expected to under-perform the President Chain. In addition to that, Silergy Corp is 1.43 times more volatile than President Chain Store. It trades about -0.35 of its total potential returns per unit of risk. President Chain Store is currently generating about -0.2 per unit of volatility. If you would invest 29,200 in President Chain Store on August 29, 2024 and sell it today you would lose (2,150) from holding President Chain Store or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silergy Corp vs. President Chain Store
Performance |
| Timeline |
| Silergy Corp |
| President Chain Store |
Silergy Corp and President Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silergy Corp and President Chain
The main advantage of trading using opposite Silergy Corp and President Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, President Chain 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 President Chain will offset losses from the drop in President Chain's long position.| Silergy Corp vs. Novatek Microelectronics Corp | Silergy Corp vs. Realtek Semiconductor Corp | Silergy Corp vs. Aspeed Technology | Silergy Corp vs. Alchip Technologies |
| President Chain vs. Uni President Enterprises Corp | President Chain vs. Formosa Plastics Corp | President Chain vs. Chunghwa Telecom Co | President Chain vs. Fubon Financial Holding |
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 Stocks Directory module to find actively traded stocks across global markets.
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