Correlation Between SemiLEDS and QuickLogic

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

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

Diversification Opportunities for SemiLEDS and QuickLogic

-0.14

Correlation Coefficient

SemiLEDS  QuickLogic

Good diversification

The 3 months correlation between SemiLEDS and QuickLogic is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SemiLEDS and QuickLogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QuickLogic and SemiLEDS 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 SemiLEDS are associated (or correlated) with QuickLogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuickLogic has no effect on the direction of SemiLEDS i.e., SemiLEDS and QuickLogic go up and down completely randomly.

Pair Corralation between SemiLEDS and QuickLogic

Given the investment horizon of 90 days SemiLEDS is expected to under-perform the QuickLogic. In addition to that, SemiLEDS is 1.13 times more volatile than QuickLogic. It trades about -0.03 of its total potential returns per unit of risk. QuickLogic is currently generating about 0.06 per unit of volatility. If you would invest  557.00  in QuickLogic on April 28, 2025 and sell it today you would earn a total of  64.00  from holding QuickLogic or generate 11.49% return on investment over 90 days.

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

SemiLEDS  vs.  QuickLogic

SemiLEDS

Risk-Adjusted Performance

Very Weak

Over the last 90 days SemiLEDS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

QuickLogic

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in QuickLogic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward indicators, QuickLogic disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SemiLEDS and QuickLogic

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

The idea behind SemiLEDS and QuickLogic 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.