Correlation Between Wisekey International and Arteris
Can any of the company-specific risk be diversified away by investing in both Wisekey International and Arteris 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 Wisekey International and Arteris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisekey International Holding and Arteris, you can compare the effects of market volatilities on Wisekey International and Arteris 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 Wisekey International with a short position of Arteris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Arteris.
Diversification Opportunities for Wisekey International and Arteris
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wisekey and Arteris is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Arteris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arteris and Wisekey International 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 Wisekey International Holding are associated (or correlated) with Arteris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arteris has no effect on the direction of Wisekey International i.e., Wisekey International and Arteris go up and down completely randomly.
Pair Corralation between Wisekey International and Arteris
Given the investment horizon of 90 days Wisekey International is expected to generate 1.09 times less return on investment than Arteris. In addition to that, Wisekey International is 1.17 times more volatile than Arteris. It trades about 0.16 of its total potential returns per unit of risk. Arteris is currently generating about 0.2 per unit of volatility. If you would invest 711.00 in Arteris on August 28, 2024 and sell it today you would earn a total of 139.00 from holding Arteris or generate 19.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. Arteris
Performance |
| Timeline |
| Wisekey International |
| Arteris |
Wisekey International and Arteris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Arteris
The main advantage of trading using opposite Wisekey International and Arteris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Arteris 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 Arteris will offset losses from the drop in Arteris' long position.| Wisekey International vs. Scully Royalty | Wisekey International vs. Donnelley Financial Solutions | Wisekey International vs. Heritage Global | Wisekey International vs. Oppenheimer Holdings |
| Arteris vs. Formula Systems 1985 | Arteris vs. Amplitude | Arteris vs. Airsculpt Technologies | Arteris vs. Enfusion |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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