Correlation Between Silicon Motion and MC Mining
Can any of the company-specific risk be diversified away by investing in both Silicon Motion and MC Mining 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 MC Mining 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 MC Mining, you can compare the effects of market volatilities on Silicon Motion and MC Mining 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 MC Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Motion and MC Mining.
Diversification Opportunities for Silicon Motion and MC Mining
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silicon and G1V is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Motion Technology and MC Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MC Mining 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 MC Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MC Mining has no effect on the direction of Silicon Motion i.e., Silicon Motion and MC Mining go up and down completely randomly.
Pair Corralation between Silicon Motion and MC Mining
Assuming the 90 days trading horizon Silicon Motion is expected to generate 504.53 times less return on investment than MC Mining. But when comparing it to its historical volatility, Silicon Motion Technology is 59.78 times less risky than MC Mining. It trades about 0.01 of its potential returns per unit of risk. MC Mining is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5.75 in MC Mining on September 14, 2024 and sell it today you would lose (5.60) from holding MC Mining or give up 97.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Motion Technology vs. MC Mining
Performance |
| Timeline |
| Silicon Motion Technology |
| MC Mining |
Silicon Motion and MC Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Motion and MC Mining
The main advantage of trading using opposite Silicon Motion and MC Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Motion position performs unexpectedly, MC Mining 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 MC Mining will offset losses from the drop in MC Mining's long position.| Silicon Motion vs. Sumitomo Rubber Industries | Silicon Motion vs. Martin Marietta Materials | Silicon Motion vs. The Yokohama Rubber | Silicon Motion vs. Materialise NV |
| MC Mining vs. INDO RAMA SYNTHETIC | MC Mining vs. AIR PRODCHEMICALS | MC Mining vs. Tower Semiconductor | MC Mining vs. Silicon Motion Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |