Correlation Between Semrush Holdings and SimilarWeb

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

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

Diversification Opportunities for Semrush Holdings and SimilarWeb

-0.29

Correlation Coefficient

Semrush Holdings  SimilarWeb

Very good diversification

The 3 months correlation between Semrush and SimilarWeb is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Semrush Holdings and SimilarWeb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SimilarWeb and Semrush Holdings 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 Semrush Holdings are associated (or correlated) with SimilarWeb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SimilarWeb has no effect on the direction of Semrush Holdings i.e., Semrush Holdings and SimilarWeb go up and down completely randomly.

Pair Corralation between Semrush Holdings and SimilarWeb

Given the investment horizon of 90 days Semrush Holdings is expected to under-perform the SimilarWeb. But the stock apears to be less risky and, when comparing its historical volatility, Semrush Holdings is 1.02 times less risky than SimilarWeb. The stock trades about -0.1 of its potential returns per unit of risk. The SimilarWeb is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  757.00  in SimilarWeb on May 4, 2025 and sell it today you would earn a total of  34.00  from holding SimilarWeb or generate 4.49% return on investment over 90 days.

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

Semrush Holdings  vs.  SimilarWeb

Semrush Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semrush Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

SimilarWeb

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SimilarWeb are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, SimilarWeb may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Semrush Holdings and SimilarWeb

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

The idea behind Semrush Holdings and SimilarWeb 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.