Correlation Between Tower Semiconductor and Lineage Cell
Can any of the company-specific risk be diversified away by investing in both Tower Semiconductor and Lineage Cell 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 Tower Semiconductor and Lineage Cell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tower Semiconductor and Lineage Cell Therapeutics, you can compare the effects of market volatilities on Tower Semiconductor and Lineage Cell 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 Tower Semiconductor with a short position of Lineage Cell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tower Semiconductor and Lineage Cell.
Diversification Opportunities for Tower Semiconductor and Lineage Cell
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tower and Lineage is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tower Semiconductor and Lineage Cell Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lineage Cell Therapeutics and Tower 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 Tower Semiconductor are associated (or correlated) with Lineage Cell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lineage Cell Therapeutics has no effect on the direction of Tower Semiconductor i.e., Tower Semiconductor and Lineage Cell go up and down completely randomly.
Pair Corralation between Tower Semiconductor and Lineage Cell
Assuming the 90 days trading horizon Tower Semiconductor is expected to generate 0.42 times more return on investment than Lineage Cell. However, Tower Semiconductor is 2.38 times less risky than Lineage Cell. It trades about 0.13 of its potential returns per unit of risk. Lineage Cell Therapeutics is currently generating about -0.13 per unit of risk. If you would invest 1,610,000 in Tower Semiconductor on September 25, 2024 and sell it today you would earn a total of 260,000 from holding Tower Semiconductor or generate 16.15% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 97.83% |
Values | Daily Returns |
Tower Semiconductor vs. Lineage Cell Therapeutics
Performance |
Timeline |
Tower Semiconductor |
Lineage Cell Therapeutics |
Tower Semiconductor and Lineage Cell Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tower Semiconductor and Lineage Cell
The main advantage of trading using opposite Tower Semiconductor and Lineage Cell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tower Semiconductor position performs unexpectedly, Lineage Cell 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 Lineage Cell will offset losses from the drop in Lineage Cell's long position.Tower Semiconductor vs. Palram | Tower Semiconductor vs. Shagrir Group Vehicle | Tower Semiconductor vs. EN Shoham Business | Tower Semiconductor vs. Lapidoth |
Lineage Cell vs. Kamada | Lineage Cell vs. Tower Semiconductor | Lineage Cell vs. Elbit Systems | Lineage Cell vs. Nice |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |