Correlation Between Wisekey International and CEVA
Can any of the company-specific risk be diversified away by investing in both Wisekey International and CEVA 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 CEVA 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 CEVA Inc, you can compare the effects of market volatilities on Wisekey International and CEVA 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 CEVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and CEVA.
Diversification Opportunities for Wisekey International and CEVA
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wisekey and CEVA is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and CEVA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEVA Inc 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 CEVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEVA Inc has no effect on the direction of Wisekey International i.e., Wisekey International and CEVA go up and down completely randomly.
Pair Corralation between Wisekey International and CEVA
Given the investment horizon of 90 days Wisekey International Holding is expected to generate 3.35 times more return on investment than CEVA. However, Wisekey International is 3.35 times more volatile than CEVA Inc. It trades about 0.05 of its potential returns per unit of risk. CEVA Inc is currently generating about 0.01 per unit of risk. If you would invest 521.00 in Wisekey International Holding on November 2, 2024 and sell it today you would earn a total of 269.00 from holding Wisekey International Holding or generate 51.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Wisekey International Holding vs. CEVA Inc
Performance |
| Timeline |
| Wisekey International |
| CEVA Inc |
Wisekey International and CEVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and CEVA
The main advantage of trading using opposite Wisekey International and CEVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, CEVA 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 CEVA will offset losses from the drop in CEVA's long position.| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
| CEVA vs. MagnaChip Semiconductor | CEVA vs. MACOM Technology Solutions | CEVA vs. FormFactor | CEVA vs. MaxLinear |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |