Correlation Between Clevo and Silicon Integrated

Can any of the company-specific risk be diversified away by investing in both Clevo and Silicon Integrated 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 Clevo and Silicon Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Clevo Co and Silicon Integrated Systems, you can compare the effects of market volatilities on Clevo and Silicon Integrated 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 Clevo with a short position of Silicon Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Silicon Integrated.

Diversification Opportunities for Clevo and Silicon Integrated

0.55

Correlation Coefficient

Clevo  Silicon Integrated

Very weak diversification

The 3 months correlation between Clevo and Silicon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Silicon Integrated Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Integrated and Clevo 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 Clevo Co are associated (or correlated) with Silicon Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Integrated has no effect on the direction of Clevo i.e., Clevo and Silicon Integrated go up and down completely randomly.

Pair Corralation between Clevo and Silicon Integrated

Assuming the 90 days trading horizon Clevo is expected to generate 4.0 times less return on investment than Silicon Integrated. In addition to that, Clevo is 1.04 times more volatile than Silicon Integrated Systems. It trades about 0.01 of its total potential returns per unit of risk. Silicon Integrated Systems is currently generating about 0.03 per unit of volatility. If you would invest  6,690  in Silicon Integrated Systems on September 3, 2024 and sell it today you would earn a total of  210.00  from holding Silicon Integrated Systems or generate 3.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Clevo Co  vs.  Silicon Integrated Systems

Clevo

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Clevo Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Clevo is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Silicon Integrated

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Silicon Integrated Systems are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Silicon Integrated is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Clevo and Silicon Integrated

The main advantage of trading using opposite Clevo and Silicon Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Silicon Integrated 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 Silicon Integrated will offset losses from the drop in Silicon Integrated's long position.

The idea behind Clevo Co and Silicon Integrated Systems pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..