Correlation Between Semtech and JEFFERIES
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By analyzing existing cross correlation between Semtech and JEFFERIES GROUP LLC, you can compare the effects of market volatilities on Semtech and JEFFERIES 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 JEFFERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semtech and JEFFERIES.
Diversification Opportunities for Semtech and JEFFERIES
Good diversification
The 3 months correlation between Semtech and JEFFERIES is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Semtech and JEFFERIES GROUP LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JEFFERIES GROUP LLC 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 JEFFERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JEFFERIES GROUP LLC has no effect on the direction of Semtech i.e., Semtech and JEFFERIES go up and down completely randomly.
Pair Corralation between Semtech and JEFFERIES
Given the investment horizon of 90 days Semtech is expected to generate 7.74 times more return on investment than JEFFERIES. However, Semtech is 7.74 times more volatile than JEFFERIES GROUP LLC. It trades about 0.09 of its potential returns per unit of risk. JEFFERIES GROUP LLC is currently generating about 0.12 per unit of risk. If you would invest 6,210 in Semtech on November 3, 2024 and sell it today you would earn a total of 486.00 from holding Semtech or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Semtech vs. JEFFERIES GROUP LLC
Performance |
| Timeline |
| Semtech |
| JEFFERIES GROUP LLC |
Semtech and JEFFERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semtech and JEFFERIES
The main advantage of trading using opposite Semtech and JEFFERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semtech position performs unexpectedly, JEFFERIES 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 JEFFERIES will offset losses from the drop in JEFFERIES's long position.| Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated | Semtech vs. MACOM Technology Solutions | Semtech vs. Cirrus Logic |
| JEFFERIES vs. Pentair PLC | JEFFERIES vs. Molecular Partners AG | JEFFERIES vs. Air Lease | JEFFERIES vs. Western Digital |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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