Correlation Between Silicon Laboratories and QuickLogic
Can any of the company-specific risk be diversified away by investing in both Silicon Laboratories and QuickLogic 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 QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Laboratories and QuickLogic, you can compare the effects of market volatilities on Silicon Laboratories and QuickLogic 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 QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Laboratories and QuickLogic.
Diversification Opportunities for Silicon Laboratories and QuickLogic
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silicon and QuickLogic is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Laboratories and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic 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 QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Silicon Laboratories i.e., Silicon Laboratories and QuickLogic go up and down completely randomly.
Pair Corralation between Silicon Laboratories and QuickLogic
Given the investment horizon of 90 days Silicon Laboratories is expected to generate 0.56 times more return on investment than QuickLogic. However, Silicon Laboratories is 1.79 times less risky than QuickLogic. It trades about 0.1 of its potential returns per unit of risk. QuickLogic is currently generating about 0.03 per unit of risk. If you would invest 10,634 in Silicon Laboratories on November 2, 2024 and sell it today you would earn a total of 2,936 from holding Silicon Laboratories or generate 27.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Laboratories vs. QuickLogic
Performance |
| Timeline |
| Silicon Laboratories |
| QuickLogic |
Silicon Laboratories and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Laboratories and QuickLogic
The main advantage of trading using opposite Silicon Laboratories and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Laboratories position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.| Silicon Laboratories vs. Diodes Incorporated | Silicon Laboratories vs. MACOM Technology Solutions | Silicon Laboratories vs. FormFactor | Silicon Laboratories vs. Amkor Technology |
| QuickLogic vs. Pixelworks | QuickLogic vs. AXT Inc | QuickLogic vs. Power Integrations | QuickLogic vs. Lattice Semiconductor |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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