Correlation Between Analog Devices and SEP Acquisition
Can any of the company-specific risk be diversified away by investing in both Analog Devices and SEP Acquisition 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 Analog Devices and SEP Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analog Devices and SEP Acquisition Corp, you can compare the effects of market volatilities on Analog Devices and SEP Acquisition 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 Analog Devices with a short position of SEP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and SEP Acquisition.
Diversification Opportunities for Analog Devices and SEP Acquisition
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Analog and SEP is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and SEP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEP Acquisition Corp and Analog Devices 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 Analog Devices are associated (or correlated) with SEP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEP Acquisition Corp has no effect on the direction of Analog Devices i.e., Analog Devices and SEP Acquisition go up and down completely randomly.
Pair Corralation between Analog Devices and SEP Acquisition
If you would invest 21,135 in Analog Devices on November 3, 2024 and sell it today you would earn a total of 54.00 from holding Analog Devices or generate 0.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Analog Devices vs. SEP Acquisition Corp
Performance |
| Timeline |
| Analog Devices |
| SEP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Analog Devices and SEP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Devices and SEP Acquisition
The main advantage of trading using opposite Analog Devices and SEP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices position performs unexpectedly, SEP Acquisition 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 SEP Acquisition will offset losses from the drop in SEP Acquisition's long position.| Analog Devices vs. First Solar | Analog Devices vs. Sunrun Inc | Analog Devices vs. Canadian Solar | Analog Devices vs. SolarEdge Technologies |
| SEP Acquisition vs. Alta Equipment Group | SEP Acquisition vs. China Aircraft Leasing | SEP Acquisition vs. Skillz Platform | SEP Acquisition vs. SohuCom |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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