Correlation Between 8x8 Common and Lattice Semiconductor

Can any of the company-specific risk be diversified away by investing in both 8x8 Common and Lattice Semiconductor 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 8x8 Common and Lattice Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 8x8 Common Stock and Lattice Semiconductor, you can compare the effects of market volatilities on 8x8 Common and Lattice Semiconductor 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 8x8 Common with a short position of Lattice Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of 8x8 Common and Lattice Semiconductor.

Diversification Opportunities for 8x8 Common and Lattice Semiconductor

0.77

Correlation Coefficient

8x8 Common  Lattice Semiconductor

Poor diversification

The 3 months correlation between 8x8 and Lattice is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding 8x8 Common Stock and Lattice Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lattice Semiconductor and 8x8 Common 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 8x8 Common Stock are associated (or correlated) with Lattice Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lattice Semiconductor has no effect on the direction of 8x8 Common i.e., 8x8 Common and Lattice Semiconductor go up and down completely randomly.

Pair Corralation between 8x8 Common and Lattice Semiconductor

Given the investment horizon of 90 days 8x8 Common Stock is expected to generate 1.08 times more return on investment than Lattice Semiconductor. However, 8x8 Common is 1.08 times more volatile than Lattice Semiconductor. It trades about 0.04 of its potential returns per unit of risk. Lattice Semiconductor is currently generating about -0.02 per unit of risk. If you would invest  179.00  in 8x8 Common Stock on May 4, 2025 and sell it today you would earn a total of  8.00  from holding 8x8 Common Stock or generate 4.47% return on investment over 90 days.

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

8x8 Common Stock  vs.  Lattice Semiconductor

8x8 Common Stock

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in 8x8 Common Stock are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile technical indicators, 8x8 Common may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Lattice Semiconductor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lattice Semiconductor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Lattice Semiconductor is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with 8x8 Common and Lattice Semiconductor

The main advantage of trading using opposite 8x8 Common and Lattice Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 8x8 Common position performs unexpectedly, Lattice Semiconductor 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 Lattice Semiconductor will offset losses from the drop in Lattice Semiconductor's long position.

The idea behind 8x8 Common Stock and Lattice Semiconductor 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.