Correlation Between Wisekey International and Advantest Corp
Can any of the company-specific risk be diversified away by investing in both Wisekey International and Advantest Corp 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 Advantest Corp 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 Advantest Corp DRC, you can compare the effects of market volatilities on Wisekey International and Advantest Corp 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 Advantest Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Advantest Corp.
Diversification Opportunities for Wisekey International and Advantest Corp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wisekey and Advantest is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Advantest Corp DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantest Corp DRC 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 Advantest Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantest Corp DRC has no effect on the direction of Wisekey International i.e., Wisekey International and Advantest Corp go up and down completely randomly.
Pair Corralation between Wisekey International and Advantest Corp
If you would invest 197.00 in Wisekey International Holding on September 1, 2024 and sell it today you would earn a total of 13.00 from holding Wisekey International Holding or generate 6.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Wisekey International Holding vs. Advantest Corp DRC
Performance |
| Timeline |
| Wisekey International |
| Advantest Corp DRC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wisekey International and Advantest Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Advantest Corp
The main advantage of trading using opposite Wisekey International and Advantest Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Advantest Corp 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 Advantest Corp will offset losses from the drop in Advantest Corp's long position.| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
| Advantest Corp vs. Disco Corp ADR | Advantest Corp vs. Tokyo Electron | Advantest Corp vs. Lasertec | Advantest Corp vs. BE Semiconductor Industries |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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