Correlation Between Spectral and Analog Devices
Can any of the company-specific risk be diversified away by investing in both Spectral and Analog Devices 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 Spectral and Analog Devices into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spectral AI and Analog Devices, you can compare the effects of market volatilities on Spectral and Analog Devices 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 Spectral with a short position of Analog Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spectral and Analog Devices.
Diversification Opportunities for Spectral and Analog Devices
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Spectral and Analog is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Spectral AI and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and Spectral 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 Spectral AI are associated (or correlated) with Analog Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Devices has no effect on the direction of Spectral i.e., Spectral and Analog Devices go up and down completely randomly.
Pair Corralation between Spectral and Analog Devices
Given the investment horizon of 90 days Spectral AI is expected to under-perform the Analog Devices. In addition to that, Spectral is 1.55 times more volatile than Analog Devices. It trades about -0.44 of its total potential returns per unit of risk. Analog Devices is currently generating about 0.26 per unit of volatility. If you would invest 23,077 in Analog Devices on May 29, 2025 and sell it today you would earn a total of 2,486 from holding Analog Devices or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spectral AI vs. Analog Devices
Performance |
| Timeline |
| Spectral AI |
| Analog Devices |
Spectral and Analog Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spectral and Analog Devices
The main advantage of trading using opposite Spectral and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectral position performs unexpectedly, Analog Devices 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 Analog Devices will offset losses from the drop in Analog Devices' long position.| Spectral vs. Repro Med Systems | Spectral vs. InfuSystems Holdings | Spectral vs. Milestone Scientific | Spectral vs. Sysmex Corp |
| Analog Devices vs. NXP Semiconductors NV | Analog Devices vs. Qualcomm Incorporated | Analog Devices vs. Broadcom | Analog Devices vs. Microchip Technology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |