Correlation Between Super Micro and Power Financial
Can any of the company-specific risk be diversified away by investing in both Super Micro and Power Financial 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 Super Micro and Power Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Micro Computer, and Power Financial Corp, you can compare the effects of market volatilities on Super Micro and Power Financial 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 Super Micro with a short position of Power Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Power Financial.
Diversification Opportunities for Super Micro and Power Financial
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Super and Power is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Super Micro Computer, and Power Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Financial Corp and Super Micro 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 Super Micro Computer, are associated (or correlated) with Power Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Financial Corp has no effect on the direction of Super Micro i.e., Super Micro and Power Financial go up and down completely randomly.
Pair Corralation between Super Micro and Power Financial
Assuming the 90 days trading horizon Super Micro Computer, is expected to under-perform the Power Financial. In addition to that, Super Micro is 9.47 times more volatile than Power Financial Corp. It trades about -0.07 of its total potential returns per unit of risk. Power Financial Corp is currently generating about 0.11 per unit of volatility. If you would invest 2,493 in Power Financial Corp on September 4, 2025 and sell it today you would earn a total of 69.00 from holding Power Financial Corp or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Micro Computer, vs. Power Financial Corp
Performance |
| Timeline |
| Super Micro Computer, |
| Power Financial Corp |
Super Micro and Power Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Micro and Power Financial
The main advantage of trading using opposite Super Micro and Power Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Micro position performs unexpectedly, Power Financial 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 Power Financial will offset losses from the drop in Power Financial's long position.| Super Micro vs. WonderFi Technologies | Super Micro vs. CHAR Technologies | Super Micro vs. DGL Investments No1 | Super Micro vs. Plaza Retail REIT |
| Power Financial vs. Constellation Software | Power Financial vs. Black Iron | Power Financial vs. Micron Technology, | Power Financial vs. Super Micro Computer, |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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