Correlation Between Silicon Motion and Nates Food

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Can any of the company-specific risk be diversified away by investing in both Silicon Motion and Nates Food 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 Silicon Motion and Nates Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Motion Technology and Nates Food Co, you can compare the effects of market volatilities on Silicon Motion and Nates Food 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 Silicon Motion with a short position of Nates Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Motion and Nates Food.

Diversification Opportunities for Silicon Motion and Nates Food

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Silicon and Nates is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Motion Technology and Nates Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nates Food and Silicon Motion 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 Silicon Motion Technology are associated (or correlated) with Nates Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nates Food has no effect on the direction of Silicon Motion i.e., Silicon Motion and Nates Food go up and down completely randomly.

Pair Corralation between Silicon Motion and Nates Food

If you would invest  8,070  in Silicon Motion Technology on September 4, 2025 and sell it today you would earn a total of  793.00  from holding Silicon Motion Technology or generate 9.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Silicon Motion Technology  vs.  Nates Food Co

 Performance 
       Timeline  
Silicon Motion Technology 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Silicon Motion Technology are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent primary indicators, Silicon Motion may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Nates Food 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Nates Food Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Nates Food is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Silicon Motion and Nates Food Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Silicon Motion and Nates Food

The main advantage of trading using opposite Silicon Motion and Nates Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Motion position performs unexpectedly, Nates Food 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 Nates Food will offset losses from the drop in Nates Food's long position.
The idea behind Silicon Motion Technology and Nates Food 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.
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

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