Correlation Between Caspian Services and Analog Devices

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

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

Diversification Opportunities for Caspian Services and Analog Devices

0.0

Correlation Coefficient

Caspian Services  Analog Devices

Pay attention - limited upside

The 3 months correlation between Caspian and Analog is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Caspian Services and Analog Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Devices and Caspian Services 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 Caspian Services 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 Caspian Services i.e., Caspian Services and Analog Devices go up and down completely randomly.

Pair Corralation between Caspian Services and Analog Devices

If you would invest  21,591  in Analog Devices on May 27, 2025 and sell it today you would earn a total of  3,811  from holding Analog Devices or generate 17.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Caspian Services  vs.  Analog Devices

Caspian Services

Risk-Adjusted Performance

Weakest

Over the last 90 days Caspian Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Caspian Services is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Analog Devices

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Analog Devices are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile fundamental indicators, Analog Devices demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Caspian Services and Analog Devices

The main advantage of trading using opposite Caspian Services and Analog Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caspian Services 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.

The idea behind Caspian Services and Analog Devices 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.