Correlation Between GlobalWafers and Silergy Corp
Can any of the company-specific risk be diversified away by investing in both GlobalWafers and Silergy Corp 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 GlobalWafers and Silergy Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalWafers Co and Silergy Corp, you can compare the effects of market volatilities on GlobalWafers and Silergy Corp 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 GlobalWafers with a short position of Silergy Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalWafers and Silergy Corp.
Diversification Opportunities for GlobalWafers and Silergy Corp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GlobalWafers and Silergy is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding GlobalWafers Co and Silergy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silergy Corp and GlobalWafers 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 GlobalWafers Co are associated (or correlated) with Silergy Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silergy Corp has no effect on the direction of GlobalWafers i.e., GlobalWafers and Silergy Corp go up and down completely randomly.
Pair Corralation between GlobalWafers and Silergy Corp
Assuming the 90 days trading horizon GlobalWafers Co is expected to under-perform the Silergy Corp. But the stock apears to be less risky and, when comparing its historical volatility, GlobalWafers Co is 1.81 times less risky than Silergy Corp. The stock trades about -0.1 of its potential returns per unit of risk. The Silergy Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 39,450 in Silergy Corp on November 18, 2024 and sell it today you would earn a total of 2,800 from holding Silergy Corp or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlobalWafers Co vs. Silergy Corp
Performance |
| Timeline |
| GlobalWafers |
| Silergy Corp |
GlobalWafers and Silergy Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalWafers and Silergy Corp
The main advantage of trading using opposite GlobalWafers and Silergy Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalWafers position performs unexpectedly, Silergy Corp 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 Silergy Corp will offset losses from the drop in Silergy Corp's long position.| GlobalWafers vs. WIN Semiconductors | GlobalWafers vs. Sino American Silicon Products | GlobalWafers vs. Novatek Microelectronics Corp | GlobalWafers vs. Yageo Corp |
| Silergy Corp vs. Novatek Microelectronics Corp | Silergy Corp vs. Realtek Semiconductor Corp | Silergy Corp vs. Aspeed Technology | Silergy Corp vs. Alchip Technologies |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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