Correlation Between EMCORE and QuickLogic
Can any of the company-specific risk be diversified away by investing in both EMCORE 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 EMCORE and QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMCORE and QuickLogic, you can compare the effects of market volatilities on EMCORE 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 EMCORE with a short position of QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMCORE and QuickLogic.
Diversification Opportunities for EMCORE and QuickLogic
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between EMCORE and QuickLogic is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding EMCORE and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and EMCORE 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 EMCORE 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 EMCORE i.e., EMCORE and QuickLogic go up and down completely randomly.
Pair Corralation between EMCORE and QuickLogic
Given the investment horizon of 90 days EMCORE is expected to generate 0.11 times more return on investment than QuickLogic. However, EMCORE is 9.15 times less risky than QuickLogic. It trades about 0.19 of its potential returns per unit of risk. QuickLogic is currently generating about -0.35 per unit of risk. If you would invest 300.00 in EMCORE on November 2, 2024 and sell it today you would earn a total of 6.00 from holding EMCORE or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMCORE vs. QuickLogic
Performance |
| Timeline |
| EMCORE |
| QuickLogic |
EMCORE and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMCORE and QuickLogic
The main advantage of trading using opposite EMCORE and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMCORE 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.The idea behind EMCORE and QuickLogic 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.| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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