Correlation Between Indie Semiconductor and Navitas Semiconductor
Can any of the company-specific risk be diversified away by investing in both Indie Semiconductor and Navitas Semiconductor 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 Indie Semiconductor and Navitas Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between indie Semiconductor and Navitas Semiconductor Corp, you can compare the effects of market volatilities on Indie Semiconductor and Navitas Semiconductor 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 Indie Semiconductor with a short position of Navitas Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indie Semiconductor and Navitas Semiconductor.
Diversification Opportunities for Indie Semiconductor and Navitas Semiconductor
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indie and Navitas is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding indie Semiconductor and Navitas Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navitas Semiconductor and Indie Semiconductor 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 indie Semiconductor are associated (or correlated) with Navitas Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navitas Semiconductor has no effect on the direction of Indie Semiconductor i.e., Indie Semiconductor and Navitas Semiconductor go up and down completely randomly.
Pair Corralation between Indie Semiconductor and Navitas Semiconductor
Given the investment horizon of 90 days indie Semiconductor is expected to generate 1.86 times more return on investment than Navitas Semiconductor. However, Indie Semiconductor is 1.86 times more volatile than Navitas Semiconductor Corp. It trades about 0.17 of its potential returns per unit of risk. Navitas Semiconductor Corp is currently generating about -0.02 per unit of risk. If you would invest 350.00 in indie Semiconductor on August 29, 2024 and sell it today you would earn a total of 153.00 from holding indie Semiconductor or generate 43.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
indie Semiconductor vs. Navitas Semiconductor Corp
Performance |
| Timeline |
| indie Semiconductor |
| Navitas Semiconductor |
Indie Semiconductor and Navitas Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indie Semiconductor and Navitas Semiconductor
The main advantage of trading using opposite Indie Semiconductor and Navitas Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indie Semiconductor position performs unexpectedly, Navitas Semiconductor 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 Navitas Semiconductor will offset losses from the drop in Navitas Semiconductor's long position.| Indie Semiconductor vs. Axcelis Technologies | Indie Semiconductor vs. inTest | Indie Semiconductor vs. Lam Research Corp | Indie Semiconductor vs. Photronics |
| Navitas Semiconductor vs. ON Semiconductor | Navitas Semiconductor vs. Monolithic Power Systems | Navitas Semiconductor vs. Globalfoundries | Navitas Semiconductor vs. Analog Devices |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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