Correlation Between Silergy Corp and Macroblock
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and Macroblock 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 Macroblock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silergy Corp and Macroblock, you can compare the effects of market volatilities on Silergy Corp and Macroblock 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 Macroblock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and Macroblock.
Diversification Opportunities for Silergy Corp and Macroblock
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silergy and Macroblock is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and Macroblock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macroblock 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 Macroblock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macroblock has no effect on the direction of Silergy Corp i.e., Silergy Corp and Macroblock go up and down completely randomly.
Pair Corralation between Silergy Corp and Macroblock
Assuming the 90 days trading horizon Silergy Corp is expected to under-perform the Macroblock. In addition to that, Silergy Corp is 2.5 times more volatile than Macroblock. It trades about -0.18 of its total potential returns per unit of risk. Macroblock is currently generating about -0.35 per unit of volatility. If you would invest 7,760 in Macroblock on September 13, 2024 and sell it today you would lose (730.00) from holding Macroblock or give up 9.41% 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. Macroblock
Performance |
| Timeline |
| Silergy Corp |
| Macroblock |
Silergy Corp and Macroblock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silergy Corp and Macroblock
The main advantage of trading using opposite Silergy Corp and Macroblock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, Macroblock 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 Macroblock will offset losses from the drop in Macroblock'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 |
| Macroblock vs. Tigerair Taiwan Co | Macroblock vs. Hi Lai Foods Co | Macroblock vs. Air Asia Co | Macroblock vs. Farglory FTZ Investment |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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