Correlation Between Littelfuse and Immersion
Can any of the company-specific risk be diversified away by investing in both Littelfuse and Immersion 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 Littelfuse and Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Littelfuse and Immersion, you can compare the effects of market volatilities on Littelfuse and Immersion 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 Littelfuse with a short position of Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Littelfuse and Immersion.
Diversification Opportunities for Littelfuse and Immersion
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Littelfuse and Immersion is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Littelfuse and Immersion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immersion and Littelfuse 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 Littelfuse are associated (or correlated) with Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immersion has no effect on the direction of Littelfuse i.e., Littelfuse and Immersion go up and down completely randomly.
Pair Corralation between Littelfuse and Immersion
Given the investment horizon of 90 days Littelfuse is expected to generate 1.09 times more return on investment than Immersion. However, Littelfuse is 1.09 times more volatile than Immersion. It trades about 0.13 of its potential returns per unit of risk. Immersion is currently generating about -0.07 per unit of risk. If you would invest 22,202 in Littelfuse on June 8, 2025 and sell it today you would earn a total of 3,756 from holding Littelfuse or generate 16.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Littelfuse vs. Immersion
Performance |
| Timeline |
| Littelfuse |
| Immersion |
Littelfuse and Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Littelfuse and Immersion
The main advantage of trading using opposite Littelfuse and Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Littelfuse position performs unexpectedly, Immersion 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 Immersion will offset losses from the drop in Immersion's long position.| Littelfuse vs. Plexus Corp | Littelfuse vs. Celestica | Littelfuse vs. Benchmark Electronics | Littelfuse vs. Flex |
| Immersion vs. CoreCard Corp | Immersion vs. ADEIA P | Immersion vs. Materialise NV | Immersion vs. CS Disco LLC |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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