Correlation Between Semiconductor Manufacturing and Lattice Semiconductor

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

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

Diversification Opportunities for Semiconductor Manufacturing and Lattice Semiconductor

0.0

Correlation Coefficient

Semiconductor Manufacturing  Lattice Semiconductor

Pay attention - limited upside

The 3 months correlation between Semiconductor and Lattice is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Semiconductor Manufacturing In and Lattice Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lattice Semiconductor and Semiconductor Manufacturing 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 Semiconductor Manufacturing International 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 Semiconductor Manufacturing i.e., Semiconductor Manufacturing and Lattice Semiconductor go up and down completely randomly.

Pair Corralation between Semiconductor Manufacturing and Lattice Semiconductor

If you would invest  3,749  in Lattice Semiconductor on April 24, 2025 and sell it today you would earn a total of  665.00  from holding Lattice Semiconductor or generate 17.74% return on investment over 90 days.

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

Semiconductor Manufacturing In  vs.  Lattice Semiconductor

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.

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.

Pair Trading with Semiconductor Manufacturing and Lattice Semiconductor

The main advantage of trading using opposite Semiconductor Manufacturing and Lattice Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semiconductor Manufacturing 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.

The idea behind Semiconductor Manufacturing International and Lattice Semiconductor 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.