Correlation Between Power Integrations and QuickLogic
Can any of the company-specific risk be diversified away by investing in both Power Integrations and QuickLogic 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 Power Integrations and QuickLogic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Integrations and QuickLogic, you can compare the effects of market volatilities on Power Integrations and QuickLogic 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 Power Integrations with a short position of QuickLogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Integrations and QuickLogic.
Diversification Opportunities for Power Integrations and QuickLogic
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Power and QuickLogic is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Power Integrations and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and Power Integrations 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 Power Integrations are associated (or correlated) with QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of Power Integrations i.e., Power Integrations and QuickLogic go up and down completely randomly.
Pair Corralation between Power Integrations and QuickLogic
Given the investment horizon of 90 days Power Integrations is expected to under-perform the QuickLogic. But the stock apears to be less risky and, when comparing its historical volatility, Power Integrations is 1.54 times less risky than QuickLogic. The stock trades about -0.03 of its potential returns per unit of risk. The QuickLogic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 532.00 in QuickLogic on May 25, 2025 and sell it today you would earn a total of 33.00 from holding QuickLogic or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Power Integrations vs. QuickLogic
Performance |
| Timeline |
| Power Integrations |
| QuickLogic |
Power Integrations and QuickLogic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Power Integrations and QuickLogic
The main advantage of trading using opposite Power Integrations and QuickLogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Integrations position performs unexpectedly, QuickLogic 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 QuickLogic will offset losses from the drop in QuickLogic's long position.| Power Integrations vs. Diodes Incorporated | Power Integrations vs. MACOM Technology Solutions | Power Integrations vs. Cirrus Logic | Power Integrations vs. Amkor Technology |
| QuickLogic vs. Skywater Technology | QuickLogic vs. Pixelworks | QuickLogic vs. Weebit Nano Limited | QuickLogic vs. MagnaChip Semiconductor |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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