Correlation Between Silicon Motion and SGH Old
Can any of the company-specific risk be diversified away by investing in both Silicon Motion and SGH Old 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 SGH Old 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 SGH Old, you can compare the effects of market volatilities on Silicon Motion and SGH Old 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 SGH Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Motion and SGH Old.
Diversification Opportunities for Silicon Motion and SGH Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Silicon and SGH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Motion Technology and SGH Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGH Old 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 SGH Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGH Old has no effect on the direction of Silicon Motion i.e., Silicon Motion and SGH Old go up and down completely randomly.
Pair Corralation between Silicon Motion and SGH Old
If you would invest 5,148 in Silicon Motion Technology on November 18, 2024 and sell it today you would earn a total of 499.00 from holding Silicon Motion Technology or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Silicon Motion Technology vs. SGH Old
Performance |
| Timeline |
| Silicon Motion Technology |
| SGH Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Silicon Motion and SGH Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Motion and SGH Old
The main advantage of trading using opposite Silicon Motion and SGH Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Motion position performs unexpectedly, SGH Old 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 SGH Old will offset losses from the drop in SGH Old's long position.| Silicon Motion vs. ASE Industrial Holding | Silicon Motion vs. United Microelectronics | Silicon Motion vs. ChipMOS Technologies | Silicon Motion vs. SemiLEDS |
| SGH Old vs. Silicon Motion Technology | SGH Old vs. MACOM Technology Solutions | SGH Old vs. Semtech | SGH Old vs. Alpha and Omega |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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