Correlation Between Actions Semiconductor and Audience

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

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

Diversification Opportunities for Actions Semiconductor and Audience

0.0

Correlation Coefficient

Actions Semiconductor  Audience

Pay attention - limited upside

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

Pair Corralation between Actions Semiconductor and Audience

If you would invest (100.00) in Audience on January 25, 2024 and sell it today you would earn a total of  100.00  from holding Audience or generate -100.0% return on investment over 90 days.

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

Actions Semiconductor  vs.  Audience

Actions Semiconductor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Actions Semiconductor has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Actions Semiconductor is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Audience

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Actions Semiconductor and Audience

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

The idea behind Actions Semiconductor and Audience 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.