Correlation Between Lattice Semiconductor and STRATEC Biomedical

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

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

Diversification Opportunities for Lattice Semiconductor and STRATEC Biomedical

0.0

Correlation Coefficient

Lattice Semiconductor  STRATEC Biomedical

Pay attention - limited upside

The 3 months correlation between Lattice and STRATEC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lattice Semiconductor and STRATEC Biomedical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATEC Biomedical and Lattice 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 Lattice Semiconductor are associated (or correlated) with STRATEC Biomedical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATEC Biomedical has no effect on the direction of Lattice Semiconductor i.e., Lattice Semiconductor and STRATEC Biomedical go up and down completely randomly.

Pair Corralation between Lattice Semiconductor and STRATEC Biomedical

Given the investment horizon of 90 days Lattice Semiconductor is expected to generate 60.86 times more return on investment than STRATEC Biomedical. However, Lattice Semiconductor is 60.86 times more volatile than STRATEC Biomedical AG. It trades about 0.03 of its potential returns per unit of risk. STRATEC Biomedical AG is currently generating about 0.06 per unit of risk. If you would invest  6,877  in Lattice Semiconductor on September 7, 2025 and sell it today you would earn a total of  1,008  from holding Lattice Semiconductor or generate 14.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	99.2%
Values	Daily Returns

Lattice Semiconductor  vs.  STRATEC Biomedical AG

Lattice Semiconductor

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Lattice Semiconductor are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Lattice Semiconductor exhibited solid returns over the last few months and may actually be approaching a breakup point.

STRATEC Biomedical

Risk-Adjusted Performance

Weakest

Over the last 90 days STRATEC Biomedical AG has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, STRATEC Biomedical is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lattice Semiconductor and STRATEC Biomedical

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

The idea behind Lattice Semiconductor and STRATEC Biomedical AG 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.