Correlation Between Silicon Laboratories and Maxeon Solar
Can any of the company-specific risk be diversified away by investing in both Silicon Laboratories and Maxeon Solar 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 Laboratories and Maxeon Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Laboratories and Maxeon Solar Technologies, you can compare the effects of market volatilities on Silicon Laboratories and Maxeon Solar 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 Laboratories with a short position of Maxeon Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Laboratories and Maxeon Solar.
Diversification Opportunities for Silicon Laboratories and Maxeon Solar
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Silicon and Maxeon is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Laboratories and Maxeon Solar Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxeon Solar Technologies and Silicon Laboratories 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 Laboratories are associated (or correlated) with Maxeon Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxeon Solar Technologies has no effect on the direction of Silicon Laboratories i.e., Silicon Laboratories and Maxeon Solar go up and down completely randomly.
Pair Corralation between Silicon Laboratories and Maxeon Solar
Given the investment horizon of 90 days Silicon Laboratories is expected to generate 0.28 times more return on investment than Maxeon Solar. However, Silicon Laboratories is 3.61 times less risky than Maxeon Solar. It trades about 0.07 of its potential returns per unit of risk. Maxeon Solar Technologies is currently generating about -0.03 per unit of risk. If you would invest 10,623 in Silicon Laboratories on September 2, 2024 and sell it today you would earn a total of 442.00 from holding Silicon Laboratories or generate 4.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Laboratories vs. Maxeon Solar Technologies
Performance |
| Timeline |
| Silicon Laboratories |
| Maxeon Solar Technologies |
Silicon Laboratories and Maxeon Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Laboratories and Maxeon Solar
The main advantage of trading using opposite Silicon Laboratories and Maxeon Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Laboratories position performs unexpectedly, Maxeon Solar 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 Maxeon Solar will offset losses from the drop in Maxeon Solar's long position.| Silicon Laboratories vs. Diodes Incorporated | Silicon Laboratories vs. MACOM Technology Solutions | Silicon Laboratories vs. FormFactor | Silicon Laboratories vs. Amkor Technology |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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