Correlation Between Silicon Motion and Chuangs China
Can any of the company-specific risk be diversified away by investing in both Silicon Motion and Chuangs China 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 Silicon Motion and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Motion Technology and Chuangs China Investments, you can compare the effects of market volatilities on Silicon Motion and Chuangs China 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 Silicon Motion with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Motion and Chuangs China.
Diversification Opportunities for Silicon Motion and Chuangs China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silicon and Chuangs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Motion Technology and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and Silicon Motion 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 Silicon Motion Technology are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of Silicon Motion i.e., Silicon Motion and Chuangs China go up and down completely randomly.
Pair Corralation between Silicon Motion and Chuangs China
If you would invest 1.00 in Chuangs China Investments on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Motion Technology vs. Chuangs China Investments
Performance |
| Timeline |
| Silicon Motion Technology |
| Chuangs China Investments |
Silicon Motion and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Motion and Chuangs China
The main advantage of trading using opposite Silicon Motion and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Motion position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| Silicon Motion vs. Apple Inc | Silicon Motion vs. Apple Inc | Silicon Motion vs. Apple Inc | Silicon Motion vs. Apple Inc |
| Chuangs China vs. China Overseas Land | Chuangs China vs. Mitsui Fudosan Co | Chuangs China vs. Sino Land | Chuangs China vs. Hongkong Land Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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