Correlation Between Trio Tech and SemiLEDS
Can any of the company-specific risk be diversified away by investing in both Trio Tech 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 Trio Tech and SemiLEDS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trio Tech International and SemiLEDS, you can compare the effects of market volatilities on Trio Tech 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 Trio Tech with a short position of SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trio Tech and SemiLEDS.
Diversification Opportunities for Trio Tech and SemiLEDS
Excellent diversification
The 3 months correlation between Trio and SemiLEDS is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Trio Tech International and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Trio Tech 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 Trio Tech International 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 Trio Tech i.e., Trio Tech and SemiLEDS go up and down completely randomly.
Pair Corralation between Trio Tech and SemiLEDS
Considering the 90-day investment horizon Trio Tech International is expected to generate 0.65 times more return on investment than SemiLEDS. However, Trio Tech International is 1.53 times less risky than SemiLEDS. It trades about 0.05 of its potential returns per unit of risk. SemiLEDS is currently generating about -0.1 per unit of risk. If you would invest 505.00 in Trio Tech International on May 28, 2025 and sell it today you would earn a total of 32.00 from holding Trio Tech International or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trio Tech International vs. SemiLEDS
Performance |
| Timeline |
| Trio Tech International |
| SemiLEDS |
Trio Tech and SemiLEDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trio Tech and SemiLEDS
The main advantage of trading using opposite Trio Tech and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trio Tech 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.| Trio Tech vs. Aehr Test Systems | Trio Tech vs. Camtek | Trio Tech vs. Nova | Trio Tech vs. Axcelis 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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