Correlation Between Wah Fu and Wisekey International
Can any of the company-specific risk be diversified away by investing in both Wah Fu 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 Wah Fu and Wisekey International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wah Fu Education and Wisekey International Holding, you can compare the effects of market volatilities on Wah Fu 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 Wah Fu with a short position of Wisekey International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wah Fu and Wisekey International.
Diversification Opportunities for Wah Fu and Wisekey International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wah and Wisekey is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Wah Fu Education and Wisekey International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisekey International and Wah Fu 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 Wah Fu Education 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 Wah Fu i.e., Wah Fu and Wisekey International go up and down completely randomly.
Pair Corralation between Wah Fu and Wisekey International
Given the investment horizon of 90 days Wah Fu Education is expected to generate 0.62 times more return on investment than Wisekey International. However, Wah Fu Education is 1.62 times less risky than Wisekey International. It trades about -0.01 of its potential returns per unit of risk. Wisekey International Holding is currently generating about -0.01 per unit of risk. If you would invest 257.00 in Wah Fu Education on August 27, 2024 and sell it today you would lose (97.00) from holding Wah Fu Education or give up 37.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wah Fu Education vs. Wisekey International Holding
Performance |
| Timeline |
| Wah Fu Education |
| Wisekey International |
Wah Fu and Wisekey International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wah Fu and Wisekey International
The main advantage of trading using opposite Wah Fu and Wisekey International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wah Fu 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.| Wah Fu vs. American Public Education | Wah Fu vs. Lincoln Educational Services | Wah Fu vs. Adtalem Global Education |
| Wisekey International vs. Scully Royalty | Wisekey International vs. Donnelley Financial Solutions | Wisekey International vs. Heritage Global | Wisekey International vs. Oppenheimer Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |