Correlation Between Semtech and ExlService Holdings
Can any of the company-specific risk be diversified away by investing in both Semtech and ExlService Holdings 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 Semtech and ExlService Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semtech and ExlService Holdings, you can compare the effects of market volatilities on Semtech and ExlService Holdings 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 Semtech with a short position of ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semtech and ExlService Holdings.
Diversification Opportunities for Semtech and ExlService Holdings
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Semtech and ExlService is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Semtech and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings and Semtech 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 Semtech are associated (or correlated) with ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of Semtech i.e., Semtech and ExlService Holdings go up and down completely randomly.
Pair Corralation between Semtech and ExlService Holdings
Given the investment horizon of 90 days Semtech is expected to generate 2.41 times more return on investment than ExlService Holdings. However, Semtech is 2.41 times more volatile than ExlService Holdings. It trades about 0.1 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.12 per unit of risk. If you would invest 5,109 in Semtech on August 22, 2025 and sell it today you would earn a total of 1,148 from holding Semtech or generate 22.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Semtech vs. ExlService Holdings
Performance |
| Timeline |
| Semtech |
| ExlService Holdings |
Semtech and ExlService Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Semtech and ExlService Holdings
The main advantage of trading using opposite Semtech and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semtech position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.| Semtech vs. Camtek | Semtech vs. Onto Innovation | Semtech vs. Cirrus Logic | Semtech vs. Allegro Microsystems |
| ExlService Holdings vs. Dolby Laboratories | ExlService Holdings vs. Kyndryl Holdings | ExlService Holdings vs. Genpact Limited | ExlService Holdings vs. Waystar Holding Corp |
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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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