Correlation Between Silitech Technology and Zinwell

Can any of the company-specific risk be diversified away by investing in both Silitech Technology and Zinwell 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 Silitech Technology and Zinwell into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Silitech Technology Corp and Zinwell, you can compare the effects of market volatilities on Silitech Technology and Zinwell 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 Silitech Technology with a short position of Zinwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silitech Technology and Zinwell.

Diversification Opportunities for Silitech Technology and Zinwell

0.41

Correlation Coefficient

Silitech Technology  Zinwell

Very weak diversification

The 3 months correlation between Silitech and Zinwell is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Silitech Technology Corp and Zinwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinwell and Silitech Technology 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 Silitech Technology Corp are associated (or correlated) with Zinwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinwell has no effect on the direction of Silitech Technology i.e., Silitech Technology and Zinwell go up and down completely randomly.

Pair Corralation between Silitech Technology and Zinwell

Assuming the 90 days trading horizon Silitech Technology Corp is expected to under-perform the Zinwell. In addition to that, Silitech Technology is 1.01 times more volatile than Zinwell. It trades about -0.14 of its total potential returns per unit of risk. Zinwell is currently generating about 0.01 per unit of volatility. If you would invest  1,165  in Zinwell on April 25, 2025 and sell it today you would earn a total of  5.00  from holding Zinwell or generate 0.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Silitech Technology Corp  vs.  Zinwell

Silitech Technology Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silitech Technology Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in August 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Zinwell

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zinwell are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Zinwell is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Silitech Technology and Zinwell

The main advantage of trading using opposite Silitech Technology and Zinwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silitech Technology position performs unexpectedly, Zinwell 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 Zinwell will offset losses from the drop in Zinwell's long position.

The idea behind Silitech Technology Corp and Zinwell 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.

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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.