Correlation Between SolarEdge Technologies and Lattice Semiconductor
Can any of the company-specific risk be diversified away by investing in both SolarEdge Technologies and Lattice 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 SolarEdge Technologies and Lattice Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SolarEdge Technologies and Lattice Semiconductor, you can compare the effects of market volatilities on SolarEdge Technologies and Lattice 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 SolarEdge Technologies with a short position of Lattice Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of SolarEdge Technologies and Lattice Semiconductor.
Diversification Opportunities for SolarEdge Technologies and Lattice Semiconductor
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SolarEdge and Lattice is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding SolarEdge Technologies and Lattice Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lattice Semiconductor and SolarEdge Technologies 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 SolarEdge Technologies are associated (or correlated) with Lattice Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lattice Semiconductor has no effect on the direction of SolarEdge Technologies i.e., SolarEdge Technologies and Lattice Semiconductor go up and down completely randomly.
Pair Corralation between SolarEdge Technologies and Lattice Semiconductor
Given the investment horizon of 90 days SolarEdge Technologies is expected to generate 2.14 times more return on investment than Lattice Semiconductor. However, SolarEdge Technologies is 2.14 times more volatile than Lattice Semiconductor. It trades about 0.3 of its potential returns per unit of risk. Lattice Semiconductor is currently generating about 0.27 per unit of risk. If you would invest 1,413 in SolarEdge Technologies on November 28, 2024 and sell it today you would earn a total of 581.00 from holding SolarEdge Technologies or generate 41.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SolarEdge Technologies vs. Lattice Semiconductor
Performance |
| Timeline |
| SolarEdge Technologies |
| Lattice Semiconductor |
SolarEdge Technologies and Lattice Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SolarEdge Technologies and Lattice Semiconductor
The main advantage of trading using opposite SolarEdge Technologies and Lattice Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SolarEdge Technologies position performs unexpectedly, Lattice 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 Lattice Semiconductor will offset losses from the drop in Lattice Semiconductor's long position.| SolarEdge Technologies vs. First Solar | SolarEdge Technologies vs. Sunrun Inc | SolarEdge Technologies vs. Canadian Solar | SolarEdge Technologies vs. Enphase Energy |
| Lattice Semiconductor vs. Qorvo Inc | Lattice Semiconductor vs. Sitime | Lattice Semiconductor vs. Microchip Technology | Lattice Semiconductor vs. Silicon Laboratories |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |