Correlation Between Smart Global and Sitime
Can any of the company-specific risk be diversified away by investing in both Smart Global and Sitime 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 Smart Global and Sitime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Global Holdings and Sitime, you can compare the effects of market volatilities on Smart Global and Sitime 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 Smart Global with a short position of Sitime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Global and Sitime.
Diversification Opportunities for Smart Global and Sitime
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Smart and Sitime is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Smart Global Holdings and Sitime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitime and Smart Global 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 Smart Global Holdings are associated (or correlated) with Sitime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitime has no effect on the direction of Smart Global i.e., Smart Global and Sitime go up and down completely randomly.
Pair Corralation between Smart Global and Sitime
If you would invest 18,186 in Sitime on August 29, 2024 and sell it today you would earn a total of 2,790 from holding Sitime or generate 15.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Smart Global Holdings vs. Sitime
Performance |
| Timeline |
| Smart Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sitime |
Smart Global and Sitime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Global and Sitime
The main advantage of trading using opposite Smart Global and Sitime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Global position performs unexpectedly, Sitime 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 Sitime will offset losses from the drop in Sitime's long position.| Smart Global vs. Silicon Motion Technology | Smart Global vs. MACOM Technology Solutions | Smart Global vs. Semtech | Smart Global vs. Alpha and Omega |
| Sitime vs. Lattice Semiconductor | Sitime vs. Qorvo Inc | Sitime vs. Microchip Technology | Sitime vs. Silicon Laboratories |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |