Correlation Between Green World and Silitech Technology
Can any of the company-specific risk be diversified away by investing in both Green World and Silitech 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 Green World and Silitech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Silitech Technology Corp, you can compare the effects of market volatilities on Green World and Silitech 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 Green World with a short position of Silitech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Silitech Technology.
Diversification Opportunities for Green World and Silitech Technology
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Green and Silitech is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Silitech Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silitech Technology Corp and Green World 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 Green World Fintech are associated (or correlated) with Silitech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silitech Technology Corp has no effect on the direction of Green World i.e., Green World and Silitech Technology go up and down completely randomly.
Pair Corralation between Green World and Silitech Technology
Assuming the 90 days trading horizon Green World Fintech is expected to generate 2.57 times more return on investment than Silitech Technology. However, Green World is 2.57 times more volatile than Silitech Technology Corp. It trades about -0.03 of its potential returns per unit of risk. Silitech Technology Corp is currently generating about -0.15 per unit of risk. If you would invest 6,295 in Green World Fintech on October 23, 2024 and sell it today you would lose (135.00) from holding Green World Fintech or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green World Fintech vs. Silitech Technology Corp
Performance |
| Timeline |
| Green World Fintech |
| Silitech Technology Corp |
Green World and Silitech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green World and Silitech Technology
The main advantage of trading using opposite Green World and Silitech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Silitech 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 Silitech Technology will offset losses from the drop in Silitech Technology's long position.| Green World vs. AzureWave Technologies | Green World vs. WinMate Communication INC | Green World vs. Simplo Technology Co | Green World vs. Arbor Technology |
| Silitech Technology vs. Ichia Technologies | Silitech Technology vs. Cheng Uei Precision | Silitech Technology vs. Gemtek Technology Co | Silitech Technology vs. Sunplus Technology Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |