Correlation Between Tidal Trust and Silicon Motion
Can any of the company-specific risk be diversified away by investing in both Tidal Trust and Silicon Motion 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 Tidal Trust and Silicon Motion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidal Trust II and Silicon Motion Technology, you can compare the effects of market volatilities on Tidal Trust and Silicon Motion 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 Tidal Trust with a short position of Silicon Motion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidal Trust and Silicon Motion.
Diversification Opportunities for Tidal Trust and Silicon Motion
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tidal and Silicon is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Tidal Trust II and Silicon Motion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Motion Technology and Tidal Trust 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 Tidal Trust II are associated (or correlated) with Silicon Motion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Motion Technology has no effect on the direction of Tidal Trust i.e., Tidal Trust and Silicon Motion go up and down completely randomly.
Pair Corralation between Tidal Trust and Silicon Motion
Given the investment horizon of 90 days Tidal Trust is expected to generate 2.3 times less return on investment than Silicon Motion. But when comparing it to its historical volatility, Tidal Trust II is 1.75 times less risky than Silicon Motion. It trades about 0.13 of its potential returns per unit of risk. Silicon Motion Technology is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6,521 in Silicon Motion Technology on June 4, 2025 and sell it today you would earn a total of 1,447 from holding Silicon Motion Technology or generate 22.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tidal Trust II vs. Silicon Motion Technology
Performance |
| Timeline |
| Tidal Trust II |
| Silicon Motion Technology |
Tidal Trust and Silicon Motion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidal Trust and Silicon Motion
The main advantage of trading using opposite Tidal Trust and Silicon Motion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidal Trust position performs unexpectedly, Silicon Motion 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 Silicon Motion will offset losses from the drop in Silicon Motion's long position.| Tidal Trust vs. Strategy Shares | Tidal Trust vs. Freedom Day Dividend | Tidal Trust vs. Franklin Templeton ETF | Tidal Trust vs. iShares MSCI China |
| Silicon Motion vs. ASE Industrial Holding | Silicon Motion vs. Himax Technologies | Silicon Motion vs. United Microelectronics | Silicon Motion vs. MaxLinear |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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