Correlation Between Semtech and FIFTH
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By analyzing existing cross correlation between Semtech and FIFTH THIRD BANCORP, you can compare the effects of market volatilities on Semtech and FIFTH 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 Semtech with a short position of FIFTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semtech and FIFTH.
Diversification Opportunities for Semtech and FIFTH
Excellent diversification
The 3 months correlation between Semtech and FIFTH is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Semtech and FIFTH THIRD BANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIFTH THIRD BANCORP and Semtech 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 Semtech are associated (or correlated) with FIFTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIFTH THIRD BANCORP has no effect on the direction of Semtech i.e., Semtech and FIFTH go up and down completely randomly.
Pair Corralation between Semtech and FIFTH
Given the investment horizon of 90 days Semtech is expected to generate 4.26 times more return on investment than FIFTH. However, Semtech is 4.26 times more volatile than FIFTH THIRD BANCORP. It trades about 0.14 of its potential returns per unit of risk. FIFTH THIRD BANCORP is currently generating about 0.0 per unit of risk. If you would invest 2,004 in Semtech on September 3, 2024 and sell it today you would earn a total of 4,400 from holding Semtech or generate 219.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Semtech vs. FIFTH THIRD BANCORP
Performance |
| Timeline |
| Semtech |
| FIFTH THIRD BANCORP |
Semtech and FIFTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semtech and FIFTH
The main advantage of trading using opposite Semtech and FIFTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semtech position performs unexpectedly, FIFTH 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 FIFTH will offset losses from the drop in FIFTH's long position.| Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated | Semtech vs. MACOM Technology Solutions | Semtech vs. Cirrus Logic |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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