Correlation Between PETCO HEALTH and Semiconductor Manufacturing

Can any of the company-specific risk be diversified away by investing in both PETCO HEALTH and Semiconductor Manufacturing 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 PETCO HEALTH and Semiconductor Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PETCO HEALTH CLA and Semiconductor Manufacturing International, you can compare the effects of market volatilities on PETCO HEALTH and Semiconductor Manufacturing 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 PETCO HEALTH with a short position of Semiconductor Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of PETCO HEALTH and Semiconductor Manufacturing.

Diversification Opportunities for PETCO HEALTH and Semiconductor Manufacturing

0.0

Correlation Coefficient

PETCO HEALTH  Semiconductor Manufacturing

Pay attention - limited upside

The 3 months correlation between PETCO and Semiconductor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PETCO HEALTH CLA and Semiconductor Manufacturing In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semiconductor Manufacturing and PETCO HEALTH 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 PETCO HEALTH CLA are associated (or correlated) with Semiconductor Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semiconductor Manufacturing has no effect on the direction of PETCO HEALTH i.e., PETCO HEALTH and Semiconductor Manufacturing go up and down completely randomly.

Pair Corralation between PETCO HEALTH and Semiconductor Manufacturing

If you would invest  275.00  in PETCO HEALTH CLA on April 24, 2025 and sell it today you would earn a total of  76.00  from holding PETCO HEALTH CLA or generate 27.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PETCO HEALTH CLA  vs.  Semiconductor Manufacturing In

PETCO HEALTH CLA

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PETCO HEALTH CLA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, PETCO HEALTH reported solid returns over the last few months and may actually be approaching a breakup point.

Semiconductor Manufacturing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semiconductor Manufacturing International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Semiconductor Manufacturing is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PETCO HEALTH and Semiconductor Manufacturing

The main advantage of trading using opposite PETCO HEALTH and Semiconductor Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PETCO HEALTH position performs unexpectedly, Semiconductor Manufacturing 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 Semiconductor Manufacturing will offset losses from the drop in Semiconductor Manufacturing's long position.

The idea behind PETCO HEALTH CLA and Semiconductor Manufacturing International pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.