An Analysis of Semiconductor Stocks as an Opportunity for Portfolio Diversification

Abstract The semiconductor industry is a key driver of technological progress due to essential parts that are integrated in widely used electronic devices nowadays. Given its critical importance, this constantly evolving order adapt market requirements led by fast-paced consumer trends. Meanwhile, the global supply chain undergoing pressure from other conditional factors, mostly pandemic and trade restrictions recent times. With potential grow digitalization, companies can be an attractive option invest in. Building investment portfolio challenging process regardless risk preference investor. Based on concept diversification, combining low-correlated assets various industries lead overall efficient with acceptable levels. aim study analyze evolution eight selected stocks 2018 2022 evaluate their relative performance benchmark index using descriptive statistics metrics drawn daily returns. Having insight results obtained historical data allows us examine whether diversifying portfolios represents opportunity, mainly contributing pre-selection mitigate support decision.