Correlation Between QuickLogic and GCT Semiconductor

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

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

Diversification Opportunities for QuickLogic and GCT Semiconductor

0.28

Correlation Coefficient

QuickLogic  GCT Semiconductor

Modest diversification

The 3 months correlation between QuickLogic and GCT is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding QuickLogic and GCT Semiconductor Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCT Semiconductor Holding and QuickLogic 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 QuickLogic are associated (or correlated) with GCT Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCT Semiconductor Holding has no effect on the direction of QuickLogic i.e., QuickLogic and GCT Semiconductor go up and down completely randomly.

Pair Corralation between QuickLogic and GCT Semiconductor

Given the investment horizon of 90 days QuickLogic is expected to under-perform the GCT Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, QuickLogic is 6.05 times less risky than GCT Semiconductor. The stock trades about -0.01 of its potential returns per unit of risk. The GCT Semiconductor Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,049  in GCT Semiconductor Holding on August 16, 2025 and sell it today you would lose (904.00) from holding GCT Semiconductor Holding or give up 86.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	83.81%
Values	Daily Returns

QuickLogic  vs.  GCT Semiconductor Holding

QuickLogic

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in QuickLogic are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, QuickLogic may actually be approaching a critical reversion point that can send shares even higher in December 2025.

GCT Semiconductor Holding

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in GCT Semiconductor Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, GCT Semiconductor unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with QuickLogic and GCT Semiconductor

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

The idea behind QuickLogic and GCT Semiconductor Holding 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.