Correlation Between ChipMOS Technologies and SemiLEDS
Can any of the company-specific risk be diversified away by investing in both ChipMOS Technologies and SemiLEDS 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 ChipMOS Technologies and SemiLEDS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChipMOS Technologies and SemiLEDS, you can compare the effects of market volatilities on ChipMOS Technologies and SemiLEDS 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 ChipMOS Technologies with a short position of SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChipMOS Technologies and SemiLEDS.
Diversification Opportunities for ChipMOS Technologies and SemiLEDS
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ChipMOS and SemiLEDS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding ChipMOS Technologies and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and ChipMOS Technologies 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 ChipMOS Technologies are associated (or correlated) with SemiLEDS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SemiLEDS has no effect on the direction of ChipMOS Technologies i.e., ChipMOS Technologies and SemiLEDS go up and down completely randomly.
Pair Corralation between ChipMOS Technologies and SemiLEDS
Given the investment horizon of 90 days ChipMOS Technologies is expected to generate 0.48 times more return on investment than SemiLEDS. However, ChipMOS Technologies is 2.06 times less risky than SemiLEDS. It trades about -0.09 of its potential returns per unit of risk. SemiLEDS is currently generating about -0.29 per unit of risk. If you would invest 1,868 in ChipMOS Technologies on April 27, 2025 and sell it today you would lose (87.00) from holding ChipMOS Technologies or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ChipMOS Technologies vs. SemiLEDS
Performance |
| Timeline |
| ChipMOS Technologies |
| SemiLEDS |
ChipMOS Technologies and SemiLEDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChipMOS Technologies and SemiLEDS
The main advantage of trading using opposite ChipMOS Technologies and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChipMOS Technologies position performs unexpectedly, SemiLEDS 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 SemiLEDS will offset losses from the drop in SemiLEDS's long position.| ChipMOS Technologies vs. Amkor Technology | ChipMOS Technologies vs. ASE Industrial Holding | ChipMOS Technologies vs. Diodes Incorporated | ChipMOS Technologies vs. Himax Technologies |
| SemiLEDS vs. Nano Labs | SemiLEDS vs. ChipMOS Technologies | SemiLEDS vs. Wisekey International Holding | SemiLEDS vs. Silicon Motion Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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