Correlation Between Semtech and GENERAL
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By analyzing existing cross correlation between Semtech and GENERAL ELEC CAP, you can compare the effects of market volatilities on Semtech and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semtech and GENERAL.
Diversification Opportunities for Semtech and GENERAL
Average diversification
The 3 months correlation between Semtech and GENERAL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Semtech and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Semtech i.e., Semtech and GENERAL go up and down completely randomly.
Pair Corralation between Semtech and GENERAL
Given the investment horizon of 90 days Semtech is expected to generate 3.94 times more return on investment than GENERAL. However, Semtech is 3.94 times more volatile than GENERAL ELEC CAP. It trades about 0.41 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -0.18 per unit of risk. If you would invest 4,392 in Semtech on September 4, 2024 and sell it today you would earn a total of 2,303 from holding Semtech or generate 52.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Semtech vs. GENERAL ELEC CAP
Performance |
| Timeline |
| Semtech |
| GENERAL ELEC CAP |
Semtech and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semtech and GENERAL
The main advantage of trading using opposite Semtech and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semtech position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated | Semtech vs. MACOM Technology Solutions | Semtech vs. Cirrus Logic |
| GENERAL vs. Coursera | GENERAL vs. Valneva SE ADR | GENERAL vs. WEBTOON Entertainment Common | GENERAL vs. Udemy Inc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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