Correlation Between Silergy Corp and Adata Technology
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and Adata Technology 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 Adata Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silergy Corp and Adata Technology Co, you can compare the effects of market volatilities on Silergy Corp and Adata Technology 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 Adata Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and Adata Technology.
Diversification Opportunities for Silergy Corp and Adata Technology
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silergy and Adata is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and Adata Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adata Technology 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 Adata Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adata Technology has no effect on the direction of Silergy Corp i.e., Silergy Corp and Adata Technology go up and down completely randomly.
Pair Corralation between Silergy Corp and Adata Technology
Assuming the 90 days trading horizon Silergy Corp is expected to under-perform the Adata Technology. In addition to that, Silergy Corp is 1.44 times more volatile than Adata Technology Co. It trades about -0.01 of its total potential returns per unit of risk. Adata Technology Co is currently generating about 0.03 per unit of volatility. If you would invest 6,073 in Adata Technology Co on October 21, 2024 and sell it today you would earn a total of 1,647 from holding Adata Technology Co or generate 27.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silergy Corp vs. Adata Technology Co
Performance |
| Timeline |
| Silergy Corp |
| Adata Technology |
Silergy Corp and Adata Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silergy Corp and Adata Technology
The main advantage of trading using opposite Silergy Corp and Adata Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, Adata Technology 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 Adata Technology will offset losses from the drop in Adata Technology'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 |
| Adata Technology vs. Transcend Information | Adata Technology vs. Phison Electronics | Adata Technology vs. Nanya Technology Corp | Adata Technology vs. Innolux 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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