Correlation Between Wolfspeed and Lattice Semiconductor
Can any of the company-specific risk be diversified away by investing in both Wolfspeed 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 Wolfspeed and Lattice Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wolfspeed and Lattice Semiconductor, you can compare the effects of market volatilities on Wolfspeed 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 Wolfspeed with a short position of Lattice Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wolfspeed and Lattice Semiconductor.
Diversification Opportunities for Wolfspeed and Lattice Semiconductor
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Wolfspeed and Lattice is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wolfspeed and Lattice Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lattice Semiconductor and Wolfspeed 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 Wolfspeed 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 Wolfspeed i.e., Wolfspeed and Lattice Semiconductor go up and down completely randomly.
Pair Corralation between Wolfspeed and Lattice Semiconductor
Given the investment horizon of 90 days Wolfspeed is expected to generate 6.38 times less return on investment than Lattice Semiconductor. In addition to that, Wolfspeed is 2.0 times more volatile than Lattice Semiconductor. It trades about 0.01 of its total potential returns per unit of risk. Lattice Semiconductor is currently generating about 0.18 per unit of volatility. If you would invest 5,832 in Lattice Semiconductor on November 18, 2024 and sell it today you would earn a total of 610.00 from holding Lattice Semiconductor or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wolfspeed vs. Lattice Semiconductor
Performance |
| Timeline |
| Wolfspeed |
| Lattice Semiconductor |
Wolfspeed and Lattice Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wolfspeed and Lattice Semiconductor
The main advantage of trading using opposite Wolfspeed and Lattice Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wolfspeed 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.| Wolfspeed vs. NXP Semiconductors NV | Wolfspeed vs. Analog Devices | Wolfspeed vs. Microchip Technology | Wolfspeed vs. Monolithic Power Systems |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |