Correlation Between CEVA and Wisekey International
Can any of the company-specific risk be diversified away by investing in both CEVA and Wisekey International 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 CEVA and Wisekey International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEVA Inc and Wisekey International Holding, you can compare the effects of market volatilities on CEVA and Wisekey International 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 CEVA with a short position of Wisekey International. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEVA and Wisekey International.
Diversification Opportunities for CEVA and Wisekey International
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CEVA and Wisekey is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CEVA Inc and Wisekey International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisekey International and CEVA 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 CEVA Inc are associated (or correlated) with Wisekey International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wisekey International has no effect on the direction of CEVA i.e., CEVA and Wisekey International go up and down completely randomly.
Pair Corralation between CEVA and Wisekey International
Given the investment horizon of 90 days CEVA is expected to generate 9.92 times less return on investment than Wisekey International. But when comparing it to its historical volatility, CEVA Inc is 3.3 times less risky than Wisekey International. It trades about 0.02 of its potential returns per unit of risk. Wisekey International Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 410.00 in Wisekey International Holding on October 21, 2024 and sell it today you would earn a total of 326.00 from holding Wisekey International Holding or generate 79.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEVA Inc vs. Wisekey International Holding
Performance |
| Timeline |
| CEVA Inc |
| Wisekey International |
CEVA and Wisekey International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEVA and Wisekey International
The main advantage of trading using opposite CEVA and Wisekey International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEVA position performs unexpectedly, Wisekey International 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 Wisekey International will offset losses from the drop in Wisekey International's long position.| CEVA vs. MagnaChip Semiconductor | CEVA vs. MACOM Technology Solutions | CEVA vs. FormFactor | CEVA vs. MaxLinear |
| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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