Correlation Between Smart Global and CEVA
Can any of the company-specific risk be diversified away by investing in both Smart Global and CEVA 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 Smart Global and CEVA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Global Holdings and CEVA Inc, you can compare the effects of market volatilities on Smart Global and CEVA 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 Smart Global with a short position of CEVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Global and CEVA.
Diversification Opportunities for Smart Global and CEVA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Smart and CEVA is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Smart Global Holdings and CEVA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEVA Inc and Smart Global 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 Smart Global Holdings are associated (or correlated) with CEVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEVA Inc has no effect on the direction of Smart Global i.e., Smart Global and CEVA go up and down completely randomly.
Pair Corralation between Smart Global and CEVA
If you would invest 2,442 in CEVA Inc on August 31, 2024 and sell it today you would earn a total of 473.00 from holding CEVA Inc or generate 19.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Smart Global Holdings vs. CEVA Inc
Performance |
| Timeline |
| Smart Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| CEVA Inc |
Smart Global and CEVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Global and CEVA
The main advantage of trading using opposite Smart Global and CEVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Global position performs unexpectedly, CEVA 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 CEVA will offset losses from the drop in CEVA's long position.| Smart Global vs. Silicon Motion Technology | Smart Global vs. MACOM Technology Solutions | Smart Global vs. Semtech | Smart Global vs. Alpha and Omega |
| CEVA vs. MagnaChip Semiconductor | CEVA vs. MACOM Technology Solutions | CEVA vs. FormFactor | CEVA vs. MaxLinear |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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