Correlation Between Globalfoundries and Semilux International

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Globalfoundries 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 Globalfoundries and Semilux International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globalfoundries and Semilux International Ltd, you can compare the effects of market volatilities on Globalfoundries 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 Globalfoundries with a short position of Semilux International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globalfoundries and Semilux International.

Diversification Opportunities for Globalfoundries and Semilux International

0.04
  Correlation Coefficient

Significant diversification

The 3 months correlation between Globalfoundries and Semilux is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Globalfoundries and Semilux International Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semilux International and Globalfoundries 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 Globalfoundries 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 Globalfoundries i.e., Globalfoundries and Semilux International go up and down completely randomly.

Pair Corralation between Globalfoundries and Semilux International

Considering the 90-day investment horizon Globalfoundries is expected to generate 0.35 times more return on investment than Semilux International. However, Globalfoundries is 2.82 times less risky than Semilux International. It trades about 0.16 of its potential returns per unit of risk. Semilux International Ltd is currently generating about 0.01 per unit of risk. If you would invest  4,129  in Globalfoundries on September 16, 2024 and sell it today you would earn a total of  259.00  from holding Globalfoundries or generate 6.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Globalfoundries  vs.  Semilux International Ltd

 Performance 
       Timeline  
Globalfoundries 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Globalfoundries are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Globalfoundries unveiled solid returns over the last few months and may actually be approaching a breakup point.
Semilux International 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Semilux International Ltd are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain essential indicators, Semilux International showed solid returns over the last few months and may actually be approaching a breakup point.

Globalfoundries and Semilux International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Globalfoundries and Semilux International

The main advantage of trading using opposite Globalfoundries and Semilux International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globalfoundries 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 Globalfoundries 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.
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

Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Fundamental Analysis
View fundamental data based on most recent published financial statements
Commodity Directory
Find actively traded commodities issued by global exchanges
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences