Correlation Between Super Micro and Solid Impact

Can any of the company-specific risk be diversified away by investing in both Super Micro and Solid Impact 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 Solid Impact 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 Solid Impact Investments, you can compare the effects of market volatilities on Super Micro and Solid Impact 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 Solid Impact. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Micro and Solid Impact.

Diversification Opportunities for Super Micro and Solid Impact

0.0

Correlation Coefficient

Super Micro  Solid Impact

Pay attention - limited upside

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

Pair Corralation between Super Micro and Solid Impact

If you would invest  1,022  in Super Micro Computer, on April 22, 2025 and sell it today you would earn a total of  693.00  from holding Super Micro Computer, or generate 67.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Super Micro Computer,  vs.  Solid Impact Investments

Super Micro Computer,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Super Micro Computer, are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, Super Micro exhibited solid returns over the last few months and may actually be approaching a breakup point.

Solid Impact Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Solid Impact Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Solid Impact is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Super Micro and Solid Impact

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

The idea behind Super Micro Computer, and Solid Impact Investments 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.