Correlation Between ON SEMICONDUCTOR and Focus Home
Can any of the company-specific risk be diversified away by investing in both ON SEMICONDUCTOR and Focus Home 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 ON SEMICONDUCTOR and Focus Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ON SEMICONDUCTOR and Focus Home Interactive, you can compare the effects of market volatilities on ON SEMICONDUCTOR and Focus Home 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 ON SEMICONDUCTOR with a short position of Focus Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of ON SEMICONDUCTOR and Focus Home.
Diversification Opportunities for ON SEMICONDUCTOR and Focus Home
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between XS4 and Focus is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ON SEMICONDUCTOR and Focus Home Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Focus Home Interactive and ON SEMICONDUCTOR 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 ON SEMICONDUCTOR are associated (or correlated) with Focus Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Focus Home Interactive has no effect on the direction of ON SEMICONDUCTOR i.e., ON SEMICONDUCTOR and Focus Home go up and down completely randomly.
Pair Corralation between ON SEMICONDUCTOR and Focus Home
Assuming the 90 days trading horizon ON SEMICONDUCTOR is expected to generate 1.13 times more return on investment than Focus Home. However, ON SEMICONDUCTOR is 1.13 times more volatile than Focus Home Interactive. It trades about 0.08 of its potential returns per unit of risk. Focus Home Interactive is currently generating about -0.07 per unit of risk. If you would invest 4,115 in ON SEMICONDUCTOR on September 8, 2025 and sell it today you would earn a total of 645.00 from holding ON SEMICONDUCTOR or generate 15.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ON SEMICONDUCTOR vs. Focus Home Interactive
Performance |
| Timeline |
| ON SEMICONDUCTOR |
| Focus Home Interactive |
ON SEMICONDUCTOR and Focus Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ON SEMICONDUCTOR and Focus Home
The main advantage of trading using opposite ON SEMICONDUCTOR and Focus Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ON SEMICONDUCTOR position performs unexpectedly, Focus Home 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 Focus Home will offset losses from the drop in Focus Home's long position.| ON SEMICONDUCTOR vs. Apple Inc | ON SEMICONDUCTOR vs. Apple Inc | ON SEMICONDUCTOR vs. Apple Inc | ON SEMICONDUCTOR vs. Apple Inc |
| Focus Home vs. Nintendo Co | Focus Home vs. Sea Limited | Focus Home vs. Electronic Arts | Focus Home vs. NEXON Co |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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