Correlation Between Silergy Corp and Integrated Service
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and Integrated Service 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 Integrated Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silergy Corp and Integrated Service Technology, you can compare the effects of market volatilities on Silergy Corp and Integrated Service 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 Integrated Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and Integrated Service.
Diversification Opportunities for Silergy Corp and Integrated Service
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silergy and Integrated is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and Integrated Service Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Service 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 Integrated Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Service has no effect on the direction of Silergy Corp i.e., Silergy Corp and Integrated Service go up and down completely randomly.
Pair Corralation between Silergy Corp and Integrated Service
Assuming the 90 days trading horizon Silergy Corp is expected to generate 0.87 times more return on investment than Integrated Service. However, Silergy Corp is 1.15 times less risky than Integrated Service. It trades about -0.31 of its potential returns per unit of risk. Integrated Service Technology is currently generating about -0.42 per unit of risk. If you would invest 51,800 in Silergy Corp on August 25, 2024 and sell it today you would lose (8,200) from holding Silergy Corp or give up 15.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silergy Corp vs. Integrated Service Technology
Performance |
| Timeline |
| Silergy Corp |
| Integrated Service |
Silergy Corp and Integrated Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silergy Corp and Integrated Service
The main advantage of trading using opposite Silergy Corp and Integrated Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, Integrated Service 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 Integrated Service will offset losses from the drop in Integrated Service's long position.| Silergy Corp vs. Global Unichip Corp | Silergy Corp vs. Asmedia Technology | Silergy Corp vs. Unimicron Technology Corp | Silergy Corp vs. Novatek Microelectronics Corp |
| Integrated Service vs. Global Unichip Corp | Integrated Service vs. Asmedia Technology | Integrated Service vs. Unimicron Technology Corp | Integrated Service 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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