Correlation Between Lattice Semiconductor and Goosehead Insurance

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

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

Diversification Opportunities for Lattice Semiconductor and Goosehead Insurance

-0.32

Correlation Coefficient

Lattice Semiconductor  Goosehead Insurance

Very good diversification

The 3 months correlation between Lattice and Goosehead is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lattice Semiconductor and Goosehead Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goosehead Insurance and Lattice Semiconductor 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 Lattice Semiconductor are associated (or correlated) with Goosehead Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goosehead Insurance has no effect on the direction of Lattice Semiconductor i.e., Lattice Semiconductor and Goosehead Insurance go up and down completely randomly.

Pair Corralation between Lattice Semiconductor and Goosehead Insurance

Assuming the 90 days horizon Lattice Semiconductor is expected to generate 1.72 times more return on investment than Goosehead Insurance. However, Lattice Semiconductor is 1.72 times more volatile than Goosehead Insurance. It trades about 0.08 of its potential returns per unit of risk. Goosehead Insurance is currently generating about 0.02 per unit of risk. If you would invest  3,787  in Lattice Semiconductor on April 22, 2025 and sell it today you would earn a total of  669.00  from holding Lattice Semiconductor or generate 17.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Lattice Semiconductor  vs.  Goosehead Insurance

Lattice Semiconductor

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lattice Semiconductor are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Lattice Semiconductor reported solid returns over the last few months and may actually be approaching a breakup point.

Goosehead Insurance

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Goosehead Insurance are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Goosehead Insurance is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lattice Semiconductor and Goosehead Insurance

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

The idea behind Lattice Semiconductor and Goosehead Insurance 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.