Correlation Between Navitas Semiconductor and Indie Semiconductor
Can any of the company-specific risk be diversified away by investing in both Navitas Semiconductor and Indie 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 Navitas Semiconductor and Indie Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Navitas Semiconductor Corp and indie Semiconductor, you can compare the effects of market volatilities on Navitas Semiconductor and Indie 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 Navitas Semiconductor with a short position of Indie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navitas Semiconductor and Indie Semiconductor.
Diversification Opportunities for Navitas Semiconductor and Indie Semiconductor
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Navitas and Indie is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Navitas Semiconductor Corp and indie Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on indie Semiconductor and Navitas 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 Navitas Semiconductor Corp are associated (or correlated) with Indie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of indie Semiconductor has no effect on the direction of Navitas Semiconductor i.e., Navitas Semiconductor and Indie Semiconductor go up and down completely randomly.
Pair Corralation between Navitas Semiconductor and Indie Semiconductor
Given the investment horizon of 90 days Navitas Semiconductor Corp is expected to under-perform the Indie Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Navitas Semiconductor Corp is 1.86 times less risky than Indie Semiconductor. The stock trades about -0.02 of its potential returns per unit of risk. The indie Semiconductor is currently generating about 0.17 of returns per unit of risk over similar time horizon. 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 |
Navitas Semiconductor Corp vs. indie Semiconductor
Performance |
| Timeline |
| Navitas Semiconductor |
| indie Semiconductor |
Navitas Semiconductor and Indie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navitas Semiconductor and Indie Semiconductor
The main advantage of trading using opposite Navitas Semiconductor and Indie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navitas Semiconductor position performs unexpectedly, Indie 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 Indie Semiconductor will offset losses from the drop in Indie Semiconductor's long position.| Navitas Semiconductor vs. ON Semiconductor | Navitas Semiconductor vs. Monolithic Power Systems | Navitas Semiconductor vs. Globalfoundries | Navitas Semiconductor vs. Analog Devices |
| Indie Semiconductor vs. Axcelis Technologies | Indie Semiconductor vs. inTest | Indie Semiconductor vs. Lam Research Corp | Indie Semiconductor vs. Photronics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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