Correlation Between Excelliance MOS and Niko Semiconductor

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

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

Diversification Opportunities for Excelliance MOS and Niko Semiconductor

-0.13

Correlation Coefficient

Excelliance MOS  Niko Semiconductor

Good diversification

The 3 months correlation between Excelliance and Niko is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Excelliance MOS and Niko Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niko Semiconductor and Excelliance MOS 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 Excelliance MOS are associated (or correlated) with Niko Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niko Semiconductor has no effect on the direction of Excelliance MOS i.e., Excelliance MOS and Niko Semiconductor go up and down completely randomly.

Pair Corralation between Excelliance MOS and Niko Semiconductor

Assuming the 90 days trading horizon Excelliance MOS is expected to under-perform the Niko Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Excelliance MOS is 1.3 times less risky than Niko Semiconductor. The stock trades about -0.22 of its potential returns per unit of risk. The Niko Semiconductor Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  4,965  in Niko Semiconductor Co on September 1, 2024 and sell it today you would lose (70.00) from holding Niko Semiconductor Co or give up 1.41% of portfolio value over 90 days.

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

Excelliance MOS  vs.  Niko Semiconductor Co

Excelliance MOS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Excelliance MOS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in December 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Niko Semiconductor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Niko Semiconductor Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Niko Semiconductor 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 Excelliance MOS and Niko Semiconductor

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

The idea behind Excelliance MOS and Niko Semiconductor Co 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..