Correlation Between SemiLEDS and Semilux International
Can any of the company-specific risk be diversified away by investing in both SemiLEDS 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 SemiLEDS and Semilux International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SemiLEDS and Semilux International Ltd, you can compare the effects of market volatilities on SemiLEDS 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 SemiLEDS with a short position of Semilux International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SemiLEDS and Semilux International.
Diversification Opportunities for SemiLEDS and Semilux International
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SemiLEDS and Semilux is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SemiLEDS and Semilux International Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semilux International and SemiLEDS 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 SemiLEDS 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 SemiLEDS i.e., SemiLEDS and Semilux International go up and down completely randomly.
Pair Corralation between SemiLEDS and Semilux International
Given the investment horizon of 90 days SemiLEDS is expected to generate 0.65 times more return on investment than Semilux International. However, SemiLEDS is 1.53 times less risky than Semilux International. It trades about 0.28 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 121.00 in SemiLEDS on September 16, 2024 and sell it today you would earn a total of 27.00 from holding SemiLEDS or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SemiLEDS vs. Semilux International Ltd
Performance |
| Timeline |
| SemiLEDS |
| Semilux International |
SemiLEDS and Semilux International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SemiLEDS and Semilux International
The main advantage of trading using opposite SemiLEDS and Semilux International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SemiLEDS 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.| SemiLEDS vs. Wisekey International Holding | SemiLEDS vs. GSI Technology | SemiLEDS vs. SEALSQ Corp | SemiLEDS vs. WiSA Technologies |
| Semilux International vs. Globalfoundries | Semilux International vs. Wisekey International Holding | Semilux International vs. Nano Labs | Semilux International vs. SemiLEDS |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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