Correlation Between MaxLinear and GSI Technology
Can any of the company-specific risk be diversified away by investing in both MaxLinear and GSI 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 MaxLinear and GSI Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxLinear and GSI Technology, you can compare the effects of market volatilities on MaxLinear and GSI 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 MaxLinear with a short position of GSI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxLinear and GSI Technology.
Diversification Opportunities for MaxLinear and GSI Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between MaxLinear and GSI is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding MaxLinear and GSI Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSI Technology and MaxLinear 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 MaxLinear are associated (or correlated) with GSI Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSI Technology has no effect on the direction of MaxLinear i.e., MaxLinear and GSI Technology go up and down completely randomly.
Pair Corralation between MaxLinear and GSI Technology
Considering the 90-day investment horizon MaxLinear is expected to under-perform the GSI Technology. But the stock apears to be less risky and, when comparing its historical volatility, MaxLinear is 1.34 times less risky than GSI Technology. The stock trades about -0.01 of its potential returns per unit of risk. The GSI Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 264.00 in GSI Technology on August 25, 2024 and sell it today you would earn a total of 55.00 from holding GSI Technology or generate 20.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MaxLinear vs. GSI Technology
Performance |
| Timeline |
| MaxLinear |
| GSI Technology |
MaxLinear and GSI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MaxLinear and GSI Technology
The main advantage of trading using opposite MaxLinear and GSI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxLinear position performs unexpectedly, GSI 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 GSI Technology will offset losses from the drop in GSI Technology's long position.| MaxLinear vs. ASE Industrial Holding | MaxLinear vs. Himax Technologies | MaxLinear vs. United Microelectronics | MaxLinear vs. SemiLEDS |
| GSI Technology vs. SEALSQ Corp | GSI Technology vs. Nano Labs | GSI Technology vs. SemiLEDS | GSI Technology vs. Wisekey International Holding |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |