Correlation Between Radware and Silicom
Can any of the company-specific risk be diversified away by investing in both Radware and Silicom 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 Radware and Silicom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Radware and Silicom, you can compare the effects of market volatilities on Radware and Silicom 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 Radware with a short position of Silicom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Radware and Silicom.
Diversification Opportunities for Radware and Silicom
Significant diversification
The 3 months correlation between Radware and Silicom is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Radware and Silicom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicom and Radware 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 Radware are associated (or correlated) with Silicom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicom has no effect on the direction of Radware i.e., Radware and Silicom go up and down completely randomly.
Pair Corralation between Radware and Silicom
Given the investment horizon of 90 days Radware is expected to under-perform the Silicom. But the stock apears to be less risky and, when comparing its historical volatility, Radware is 1.51 times less risky than Silicom. The stock trades about -0.13 of its potential returns per unit of risk. The Silicom is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,578 in Silicom on July 20, 2025 and sell it today you would earn a total of 152.00 from holding Silicom or generate 9.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Radware vs. Silicom
Performance |
| Timeline |
| Radware |
| Silicom |
Radware and Silicom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Radware and Silicom
The main advantage of trading using opposite Radware and Silicom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Radware position performs unexpectedly, Silicom 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 Silicom will offset losses from the drop in Silicom's long position.| Radware vs. Rapid7 Inc | Radware vs. GigaCloud Technology Class | Radware vs. Verint Systems | Radware vs. Yext Inc |
| Silicom vs. Amplitech Group | Silicom vs. Comtech Telecommunications Corp | Silicom vs. Wallbox NV | Silicom vs. Genasys |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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