Correlation Between Silergy Corp and Laster Tech
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and Laster Tech 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 Laster Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silergy Corp and Laster Tech Corp, you can compare the effects of market volatilities on Silergy Corp and Laster Tech 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 Laster Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and Laster Tech.
Diversification Opportunities for Silergy Corp and Laster Tech
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silergy and Laster is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and Laster Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laster Tech 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 Laster Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laster Tech Corp has no effect on the direction of Silergy Corp i.e., Silergy Corp and Laster Tech go up and down completely randomly.
Pair Corralation between Silergy Corp and Laster Tech
Assuming the 90 days trading horizon Silergy Corp is expected to generate 16.26 times less return on investment than Laster Tech. In addition to that, Silergy Corp is 1.59 times more volatile than Laster Tech Corp. It trades about 0.0 of its total potential returns per unit of risk. Laster Tech Corp is currently generating about 0.02 per unit of volatility. If you would invest 3,483 in Laster Tech Corp on August 31, 2024 and sell it today you would earn a total of 347.00 from holding Laster Tech Corp or generate 9.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Silergy Corp vs. Laster Tech Corp
Performance |
| Timeline |
| Silergy Corp |
| Laster Tech Corp |
Silergy Corp and Laster Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silergy Corp and Laster Tech
The main advantage of trading using opposite Silergy Corp and Laster Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, Laster Tech 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 Laster Tech will offset losses from the drop in Laster Tech'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 |
| Laster Tech vs. Excellence Optoelectronic | Laster Tech vs. Hota Industrial Mfg | Laster Tech vs. Global PMX Co | Laster Tech vs. Cub Elecparts |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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