Correlation Between MaxLinear and Semtech
Can any of the company-specific risk be diversified away by investing in both MaxLinear and Semtech 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 MaxLinear and Semtech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MaxLinear and Semtech, you can compare the effects of market volatilities on MaxLinear and Semtech 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 MaxLinear with a short position of Semtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MaxLinear and Semtech.
Diversification Opportunities for MaxLinear and Semtech
Very weak diversification
The 3 months correlation between MaxLinear and Semtech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding MaxLinear and Semtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semtech and MaxLinear 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 MaxLinear are associated (or correlated) with Semtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semtech has no effect on the direction of MaxLinear i.e., MaxLinear and Semtech go up and down completely randomly.
Pair Corralation between MaxLinear and Semtech
Considering the 90-day investment horizon MaxLinear is expected to generate 4.82 times less return on investment than Semtech. In addition to that, MaxLinear is 1.01 times more volatile than Semtech. It trades about 0.02 of its total potential returns per unit of risk. Semtech is currently generating about 0.09 per unit of volatility. If you would invest 1,528 in Semtech on July 16, 2025 and sell it today you would earn a total of 5,299 from holding Semtech or generate 346.79% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
MaxLinear vs. Semtech
Performance |
Timeline |
MaxLinear |
Semtech |
MaxLinear and Semtech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MaxLinear and Semtech
The main advantage of trading using opposite MaxLinear and Semtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxLinear position performs unexpectedly, Semtech 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 Semtech will offset losses from the drop in Semtech's long position.MaxLinear vs. Silicon Motion Technology | MaxLinear vs. MACOM Technology Solutions | MaxLinear vs. Semtech | MaxLinear vs. Penguin Solutions, |
Semtech vs. Silicon Laboratories | Semtech vs. MaxLinear | Semtech vs. Power Integrations | Semtech vs. Diodes Incorporated |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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