Correlation Between CEVA and QuickLogic
Can any of the company-specific risk be diversified away by investing in both CEVA and QuickLogic 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 CEVA and QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEVA Inc and QuickLogic, you can compare the effects of market volatilities on CEVA and QuickLogic 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 CEVA with a short position of QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEVA and QuickLogic.
Diversification Opportunities for CEVA and QuickLogic
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between CEVA and QuickLogic is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding CEVA Inc and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and CEVA 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 CEVA Inc are associated (or correlated) with QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of CEVA i.e., CEVA and QuickLogic go up and down completely randomly.
Pair Corralation between CEVA and QuickLogic
Given the investment horizon of 90 days CEVA Inc is expected to generate 0.97 times more return on investment than QuickLogic. However, CEVA Inc is 1.03 times less risky than QuickLogic. It trades about 0.11 of its potential returns per unit of risk. QuickLogic is currently generating about -0.1 per unit of risk. If you would invest 1,974 in CEVA Inc on August 27, 2024 and sell it today you would earn a total of 1,053 from holding CEVA Inc or generate 53.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEVA Inc vs. QuickLogic
Performance |
| Timeline |
| CEVA Inc |
| QuickLogic |
CEVA and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEVA and QuickLogic
The main advantage of trading using opposite CEVA and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEVA position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.| CEVA vs. MagnaChip Semiconductor | CEVA vs. MACOM Technology Solutions | CEVA vs. FormFactor | CEVA vs. MaxLinear |
| QuickLogic vs. Pixelworks | QuickLogic vs. AXT Inc | QuickLogic vs. Power Integrations | QuickLogic vs. Lattice Semiconductor |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |