Correlation Between Flex and Semilux International
Can any of the company-specific risk be diversified away by investing in both Flex and Semilux 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 Flex and Semilux International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flex and Semilux International Ltd, you can compare the effects of market volatilities on Flex and Semilux 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 Flex with a short position of Semilux International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flex and Semilux International.
Diversification Opportunities for Flex and Semilux International
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flex and Semilux is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Flex and Semilux International Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semilux International and Flex 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 Flex are associated (or correlated) with Semilux International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semilux International has no effect on the direction of Flex i.e., Flex and Semilux International go up and down completely randomly.
Pair Corralation between Flex and Semilux International
Given the investment horizon of 90 days Flex is expected to generate 0.39 times more return on investment than Semilux International. However, Flex is 2.57 times less risky than Semilux International. It trades about 0.02 of its potential returns per unit of risk. Semilux International Ltd is currently generating about -0.04 per unit of risk. If you would invest 3,796 in Flex on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Flex or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flex vs. Semilux International Ltd
Performance |
| Timeline |
| Flex |
| Semilux International |
Flex and Semilux International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flex and Semilux International
The main advantage of trading using opposite Flex and Semilux International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flex position performs unexpectedly, Semilux 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 Semilux International will offset losses from the drop in Semilux International's long position.The idea behind Flex and Semilux International Ltd 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.| Semilux International vs. Dennys Corp | Semilux International vs. Sweetgreen | Semilux International vs. First Watch Restaurant | Semilux International vs. Mind Medicine |
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.
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