Correlation Between SIEM OFFSHORE and Semtech

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

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

Diversification Opportunities for SIEM OFFSHORE and Semtech

-0.73

Correlation Coefficient

SIEM OFFSHORE  Semtech

Pay attention - limited upside

The 3 months correlation between SIEM and Semtech is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and Semtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semtech and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with Semtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semtech has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and Semtech go up and down completely randomly.

Pair Corralation between SIEM OFFSHORE and Semtech

Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to under-perform the Semtech. But the stock apears to be less risky and, when comparing its historical volatility, SIEM OFFSHORE NEW is 1.46 times less risky than Semtech. The stock trades about -0.13 of its potential returns per unit of risk. The Semtech is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  4,111  in Semtech on July 11, 2025 and sell it today you would earn a total of  1,705  from holding Semtech or generate 41.47% return on investment over 90 days.

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

SIEM OFFSHORE NEW  vs.  Semtech

SIEM OFFSHORE NEW

Risk-Adjusted Performance

Weakest

Over the last 90 days SIEM OFFSHORE NEW has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Semtech

Risk-Adjusted Performance

Good

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

Pair Trading with SIEM OFFSHORE and Semtech

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

The idea behind SIEM OFFSHORE NEW and Semtech 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..