STMicroelectronics Correlations

STM Stock

USD 24.04 0.19 0.78%

The current 90-days correlation between STMicroelectronics NV ADR and NXP Semiconductors NV is 0.67 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as STMicroelectronics moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if STMicroelectronics NV ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

STMicroelectronics Correlation With Market

Weak diversification

The correlation between STMicroelectronics NV ADR and DJI is 0.31 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding STMicroelectronics NV ADR and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in STMicroelectronics NV ADR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.

Moving against STMicroelectronics Stock

0.4	MSI	Motorola Solutions	Pair Corr
0.34	GWRE	Guidewire Software	Pair Corr
0.53	TWLO	Twilio Inc	Pair Corr

Related Correlations Analysis

	NXPI	ADI	ON	LSCC	QRVO	WOLF	MCHP	MPWR	TXN	NVTS
NXPI		0.8	0.12	0.71	0.22	0.29	0.75	0.53	0.67	0.14	NXPI
ADI	0.8		0.05	0.65	0.07	0.19	0.9	0.15	0.9	0.07	ADI
ON	0.12	0.05		-0.22	-0.04	0.77	0.38	0.02	0.29	0.87	ON
LSCC	0.71	0.65	-0.22		-0.12	0.18	0.53	0.26	0.43	-0.26	LSCC
QRVO	0.22	0.07	-0.04	-0.12		-0.06	0.03	0.54	0.05	0.12	QRVO
WOLF	0.29	0.19	0.77	0.18	-0.06		0.42	0.07	0.27	0.7	WOLF
MCHP	0.75	0.9	0.38	0.53	0.03	0.42		0.08	0.87	0.36	MCHP
MPWR	0.53	0.15	0.02	0.26	0.54	0.07	0.08		0.12	0.16	MPWR
TXN	0.67	0.9	0.29	0.43	0.05	0.27	0.87	0.12		0.27	TXN
NVTS	0.14	0.07	0.87	-0.26	0.12	0.7	0.36	0.16	0.27		NVTS
	NXPI	ADI	ON	LSCC	QRVO	WOLF	MCHP	MPWR	TXN	NVTS

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MCHP	+ 0.9	ADI
TXN	+ 0.9	ADI
NVTS	+ 0.87	ON
TXN	+ 0.87	MCHP
ADI	+ 0.8	NXPI
WOLF	+ 0.77	ON

High negative correlations

NVTS	- 0.26	LSCC
LSCC	- 0.22	ON
QRVO	- 0.12	LSCC
WOLF	- 0.06	QRVO
QRVO	- 0.04	ON

Risk-Adjusted Indicators

There is a big difference between STMicroelectronics Stock performing well and STMicroelectronics Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze STMicroelectronics' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
NXPI	1.74	(0.03)	0.00	(0.02)	0.00	0.00	4.18	(3.80)	13.47
ADI	1.65	0.02	0.01	0.01	2.05	(1.73)	2.62	(3.66)	13.98
ON	2.30	(0.58)	0.00	(0.32)	0.00	0.00	4.34	(6.27)	13.14
LSCC	2.22	0.02	0.01	0.02	2.67	(2.32)	4.59	(4.31)	13.59
QRVO	1.90	0.12	0.06	0.07	2.14	(2.09)	4.00	(4.08)	19.23
WOLF	5.75	(0.07)	0.00	(0.01)	0.00	0.00	14.48	(9.81)	48.97
MCHP	2.08	(0.12)	0.00	(0.06)	0.00	0.00	3.78	(5.01)	20.48
MPWR	2.61	0.07	0.02	0.04	3.64	(2.54)	6.10	(5.25)	19.42
TXN	1.48	(0.01)	0.00	(0.01)	0.00	0.00	2.77	(3.50)	10.22
NVTS	5.97	(0.32)	0.00	(0.12)	0.00	0.00	13.39	(12.28)	39.07

STMicroelectronics Corporate Management

Jerome Ramel	Executive Communication	Profile
Michael Hummel	Executive Vice President Front-End Manufacturing, Analog and Power	Profile
Martine Verluyten	Independent Member of the Supervisory Board	Profile
Bertrand Stoltz	Executive Affairs	Profile
Rino Peruzzi	Americas Marketing	Profile

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