Correlation Between Skywater Technology and BrainChip Holdings
Can any of the company-specific risk be diversified away by investing in both Skywater Technology and BrainChip Holdings 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 Skywater Technology and BrainChip Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Skywater Technology and BrainChip Holdings, you can compare the effects of market volatilities on Skywater Technology and BrainChip Holdings 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 Skywater Technology with a short position of BrainChip Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Skywater Technology and BrainChip Holdings.
Diversification Opportunities for Skywater Technology and BrainChip Holdings
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Skywater and BrainChip is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Skywater Technology and BrainChip Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrainChip Holdings and Skywater Technology 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 Skywater Technology are associated (or correlated) with BrainChip Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrainChip Holdings has no effect on the direction of Skywater Technology i.e., Skywater Technology and BrainChip Holdings go up and down completely randomly.
Pair Corralation between Skywater Technology and BrainChip Holdings
Given the investment horizon of 90 days Skywater Technology is expected to generate 0.76 times more return on investment than BrainChip Holdings. However, Skywater Technology is 1.32 times less risky than BrainChip Holdings. It trades about 0.01 of its potential returns per unit of risk. BrainChip Holdings is currently generating about 0.0 per unit of risk. If you would invest 1,117 in Skywater Technology on September 1, 2024 and sell it today you would lose (323.00) from holding Skywater Technology or give up 28.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Skywater Technology vs. BrainChip Holdings
Performance |
| Timeline |
| Skywater Technology |
| BrainChip Holdings |
Skywater Technology and BrainChip Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Skywater Technology and BrainChip Holdings
The main advantage of trading using opposite Skywater Technology and BrainChip Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Skywater Technology position performs unexpectedly, BrainChip Holdings 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 BrainChip Holdings will offset losses from the drop in BrainChip Holdings' long position.| Skywater Technology vs. indie Semiconductor | Skywater Technology vs. FTC Solar | Skywater Technology vs. Sitime | Skywater Technology vs. Navitas Semiconductor Corp |
| BrainChip Holdings vs. Power Integrations | BrainChip Holdings vs. MACOM Technology Solutions | BrainChip Holdings vs. Intchains Group Limited | BrainChip Holdings vs. Vishay Intertechnology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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