Correlation Between ADEIA P and MaxLinear

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

By analyzing existing cross correlation between ADEIA P and MaxLinear, you can compare the effects of market volatilities on ADEIA P and MaxLinear 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 ADEIA P with a short position of MaxLinear. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADEIA P and MaxLinear.

Diversification Opportunities for ADEIA P and MaxLinear

0.69

Correlation Coefficient

ADEIA P  MaxLinear

Poor diversification

The 3 months correlation between ADEIA and MaxLinear is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding ADEIA P and MaxLinear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxLinear and ADEIA P 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 ADEIA P are associated (or correlated) with MaxLinear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxLinear has no effect on the direction of ADEIA P i.e., ADEIA P and MaxLinear go up and down completely randomly.

Pair Corralation between ADEIA P and MaxLinear

Given the investment horizon of 90 days ADEIA P is expected to under-perform the MaxLinear. But the stock apears to be less risky and, when comparing its historical volatility, ADEIA P is 1.17 times less risky than MaxLinear. The stock trades about -0.09 of its potential returns per unit of risk. The MaxLinear is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  1,722  in MaxLinear on August 26, 2025 and sell it today you would lose (243.00) from holding MaxLinear or give up 14.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ADEIA P  vs.  MaxLinear

ADEIA P

Risk-Adjusted Performance

Weakest

Over the last 90 days ADEIA P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

MaxLinear

Risk-Adjusted Performance

Weakest

Over the last 90 days MaxLinear has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with ADEIA P and MaxLinear

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

The idea behind ADEIA P and MaxLinear 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.

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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.