Correlation Between MagnaChip Semiconductor and Smart Global
Can any of the company-specific risk be diversified away by investing in both MagnaChip Semiconductor and Smart Global 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 MagnaChip Semiconductor and Smart Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MagnaChip Semiconductor and Smart Global Holdings, you can compare the effects of market volatilities on MagnaChip Semiconductor and Smart Global 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 MagnaChip Semiconductor with a short position of Smart Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of MagnaChip Semiconductor and Smart Global.
Diversification Opportunities for MagnaChip Semiconductor and Smart Global
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between MagnaChip and Smart is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding MagnaChip Semiconductor and Smart Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Global Holdings and MagnaChip Semiconductor 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 MagnaChip Semiconductor are associated (or correlated) with Smart Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Global Holdings has no effect on the direction of MagnaChip Semiconductor i.e., MagnaChip Semiconductor and Smart Global go up and down completely randomly.
Pair Corralation between MagnaChip Semiconductor and Smart Global
If you would invest 2,041 in Smart Global Holdings on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Smart Global Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
MagnaChip Semiconductor vs. Smart Global Holdings
Performance |
| Timeline |
| MagnaChip Semiconductor |
| Smart Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MagnaChip Semiconductor and Smart Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MagnaChip Semiconductor and Smart Global
The main advantage of trading using opposite MagnaChip Semiconductor and Smart Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MagnaChip Semiconductor position performs unexpectedly, Smart Global 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 Smart Global will offset losses from the drop in Smart Global's long position.| MagnaChip Semiconductor vs. CEVA Inc | MagnaChip Semiconductor vs. MACOM Technology Solutions | MagnaChip Semiconductor vs. FormFactor | MagnaChip Semiconductor vs. MaxLinear |
| Smart Global vs. Silicon Motion Technology | Smart Global vs. MACOM Technology Solutions | Smart Global vs. Semtech | Smart Global vs. Alpha and Omega |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |