Correlation Between Nordic Semiconductor and EMCORE
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor and EMCORE 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 Nordic Semiconductor and EMCORE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and EMCORE, you can compare the effects of market volatilities on Nordic Semiconductor and EMCORE 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 Nordic Semiconductor with a short position of EMCORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and EMCORE.
Diversification Opportunities for Nordic Semiconductor and EMCORE
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nordic and EMCORE is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and EMCORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMCORE and Nordic 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 Nordic Semiconductor ASA are associated (or correlated) with EMCORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMCORE has no effect on the direction of Nordic Semiconductor i.e., Nordic Semiconductor and EMCORE go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and EMCORE
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 0.57 times more return on investment than EMCORE. However, Nordic Semiconductor ASA is 1.76 times less risky than EMCORE. It trades about 0.01 of its potential returns per unit of risk. EMCORE is currently generating about 0.0 per unit of risk. If you would invest 1,525 in Nordic Semiconductor ASA on December 12, 2024 and sell it today you would lose (350.00) from holding Nordic Semiconductor ASA or give up 22.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.78% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. EMCORE
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| EMCORE |
Risk-Adjusted Performance
Good
Weak | Strong |
Nordic Semiconductor and EMCORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and EMCORE
The main advantage of trading using opposite Nordic Semiconductor and EMCORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor position performs unexpectedly, EMCORE 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 EMCORE will offset losses from the drop in EMCORE's long position.| Nordic Semiconductor vs. Synaptics Incorporated | ||
| Nordic Semiconductor vs. MACOM Technology Solutions | ||
| Nordic Semiconductor vs. Silicon Laboratories | ||
| Nordic Semiconductor vs. Power Integrations |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |