Correlation Between Silicon Motion and Mobix Labs
Can any of the company-specific risk be diversified away by investing in both Silicon Motion and Mobix Labs 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 Mobix Labs 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 Mobix Labs, you can compare the effects of market volatilities on Silicon Motion and Mobix Labs 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 Mobix Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Motion and Mobix Labs.
Diversification Opportunities for Silicon Motion and Mobix Labs
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silicon and Mobix is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Motion Technology and Mobix Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobix Labs 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 Mobix Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobix Labs has no effect on the direction of Silicon Motion i.e., Silicon Motion and Mobix Labs go up and down completely randomly.
Pair Corralation between Silicon Motion and Mobix Labs
Given the investment horizon of 90 days Silicon Motion Technology is expected to generate 0.4 times more return on investment than Mobix Labs. However, Silicon Motion Technology is 2.5 times less risky than Mobix Labs. It trades about 0.0 of its potential returns per unit of risk. Mobix Labs is currently generating about -0.03 per unit of risk. If you would invest 6,342 in Silicon Motion Technology on September 4, 2024 and sell it today you would lose (947.00) from holding Silicon Motion Technology or give up 14.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Motion Technology vs. Mobix Labs
Performance |
| Timeline |
| Silicon Motion Technology |
| Mobix Labs |
Silicon Motion and Mobix Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Motion and Mobix Labs
The main advantage of trading using opposite Silicon Motion and Mobix Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Motion position performs unexpectedly, Mobix Labs 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 Mobix Labs will offset losses from the drop in Mobix Labs' long position.| Silicon Motion vs. ASE Industrial Holding | Silicon Motion vs. United Microelectronics | Silicon Motion vs. ChipMOS Technologies | Silicon Motion vs. SemiLEDS |
| Mobix Labs vs. LENSAR Inc | Mobix Labs vs. ASE Industrial Holding | Mobix Labs vs. Arm Holdings plc | Mobix Labs vs. The Joint Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |