Correlation Between Peraso and Navitas Semiconductor

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

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

Diversification Opportunities for Peraso and Navitas Semiconductor

-0.04

Correlation Coefficient

Peraso  Navitas Semiconductor

Good diversification

The 3 months correlation between Peraso and Navitas is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Peraso Inc and Navitas Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navitas Semiconductor and Peraso 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 Peraso Inc are associated (or correlated) with Navitas Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navitas Semiconductor has no effect on the direction of Peraso i.e., Peraso and Navitas Semiconductor go up and down completely randomly.

Pair Corralation between Peraso and Navitas Semiconductor

Given the investment horizon of 90 days Peraso Inc is expected to under-perform the Navitas Semiconductor. In addition to that, Peraso is 1.98 times more volatile than Navitas Semiconductor Corp. It trades about -0.05 of its total potential returns per unit of risk. Navitas Semiconductor Corp is currently generating about -0.03 per unit of volatility. If you would invest  956.00  in Navitas Semiconductor Corp on September 12, 2024 and sell it today you would lose (521.00) from holding Navitas Semiconductor Corp or give up 54.5% of portfolio value over 90 days.

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

Peraso Inc  vs.  Navitas Semiconductor Corp

Peraso Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Peraso Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Navitas Semiconductor

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Navitas Semiconductor Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Navitas Semiconductor unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Peraso and Navitas Semiconductor

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

The idea behind Peraso Inc and Navitas Semiconductor Corp 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.