Correlation Between Power Integrations and Sitime
Can any of the company-specific risk be diversified away by investing in both Power Integrations and Sitime 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 Power Integrations and Sitime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Integrations and Sitime, you can compare the effects of market volatilities on Power Integrations and Sitime 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 Power Integrations with a short position of Sitime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Integrations and Sitime.
Diversification Opportunities for Power Integrations and Sitime
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Power and Sitime is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Power Integrations and Sitime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitime and Power Integrations 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 Power Integrations are associated (or correlated) with Sitime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitime has no effect on the direction of Power Integrations i.e., Power Integrations and Sitime go up and down completely randomly.
Pair Corralation between Power Integrations and Sitime
Given the investment horizon of 90 days Power Integrations is expected to under-perform the Sitime. In addition to that, Power Integrations is 1.08 times more volatile than Sitime. It trades about -0.02 of its total potential returns per unit of risk. Sitime is currently generating about 0.14 per unit of volatility. If you would invest 21,540 in Sitime on July 18, 2025 and sell it today you would earn a total of 7,460 from holding Sitime or generate 34.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power Integrations vs. Sitime
Performance |
| Timeline |
| Power Integrations |
| Sitime |
Power Integrations and Sitime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Integrations and Sitime
The main advantage of trading using opposite Power Integrations and Sitime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Integrations position performs unexpectedly, Sitime 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 Sitime will offset losses from the drop in Sitime's long position.| Power Integrations vs. inTest | Power Integrations vs. Lam Research Corp | Power Integrations vs. indie Semiconductor | Power Integrations vs. Amtech Systems |
| Sitime vs. Synaptics Incorporated | Sitime vs. MACOM Technology Solutions | Sitime vs. Silicon Laboratories | Sitime vs. Power Integrations |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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