Correlation Between Analog Devices and Four Leaf

Can any of the company-specific risk be diversified away by investing in both Analog Devices and Four Leaf 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 Analog Devices and Four Leaf into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Analog Devices and Four Leaf Acquisition, you can compare the effects of market volatilities on Analog Devices and Four Leaf 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 Analog Devices with a short position of Four Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Devices and Four Leaf.

Diversification Opportunities for Analog Devices and Four Leaf

0.5

Correlation Coefficient

Analog Devices  Four Leaf

Very weak diversification

The 3 months correlation between Analog and Four is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Analog Devices and Four Leaf Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Four Leaf Acquisition and Analog Devices 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 Analog Devices are associated (or correlated) with Four Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Four Leaf Acquisition has no effect on the direction of Analog Devices i.e., Analog Devices and Four Leaf go up and down completely randomly.

Pair Corralation between Analog Devices and Four Leaf

Considering the 90-day investment horizon Analog Devices is expected to generate 2.2 times less return on investment than Four Leaf. In addition to that, Analog Devices is 2.16 times more volatile than Four Leaf Acquisition. It trades about 0.04 of its total potential returns per unit of risk. Four Leaf Acquisition is currently generating about 0.17 per unit of volatility. If you would invest  1,129  in Four Leaf Acquisition on May 15, 2025 and sell it today you would earn a total of  83.00  from holding Four Leaf Acquisition or generate 7.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Analog Devices  vs.  Four Leaf Acquisition

Analog Devices

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Analog Devices are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental indicators, Analog Devices is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Four Leaf Acquisition

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Four Leaf Acquisition are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Four Leaf may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Analog Devices and Four Leaf

The main advantage of trading using opposite Analog Devices and Four Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Devices position performs unexpectedly, Four Leaf 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 Four Leaf will offset losses from the drop in Four Leaf's long position.

The idea behind Analog Devices and Four Leaf Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.