Correlation Between Silergy Corp and Asmedia Technology
Can any of the company-specific risk be diversified away by investing in both Silergy Corp and Asmedia 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 Asmedia 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 Asmedia Technology, you can compare the effects of market volatilities on Silergy Corp and Asmedia 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 Asmedia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silergy Corp and Asmedia Technology.
Diversification Opportunities for Silergy Corp and Asmedia Technology
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Silergy and Asmedia is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Silergy Corp and Asmedia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asmedia 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 Asmedia Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asmedia Technology has no effect on the direction of Silergy Corp i.e., Silergy Corp and Asmedia Technology go up and down completely randomly.
Pair Corralation between Silergy Corp and Asmedia Technology
Assuming the 90 days trading horizon Silergy Corp is expected to under-perform the Asmedia Technology. In addition to that, Silergy Corp is 1.17 times more volatile than Asmedia Technology. It trades about 0.0 of its total potential returns per unit of risk. Asmedia Technology is currently generating about 0.06 per unit of volatility. If you would invest 200,000 in Asmedia Technology on October 21, 2024 and sell it today you would earn a total of 4,500 from holding Asmedia Technology or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silergy Corp vs. Asmedia Technology
Performance |
| Timeline |
| Silergy Corp |
| Asmedia Technology |
Silergy Corp and Asmedia Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silergy Corp and Asmedia Technology
The main advantage of trading using opposite Silergy Corp and Asmedia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silergy Corp position performs unexpectedly, Asmedia 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 Asmedia Technology will offset losses from the drop in Asmedia 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 |
| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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