Correlation Between Wisekey International and Crexendo
Can any of the company-specific risk be diversified away by investing in both Wisekey International and Crexendo 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 Crexendo 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 Crexendo, you can compare the effects of market volatilities on Wisekey International and Crexendo 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 Crexendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Crexendo.
Diversification Opportunities for Wisekey International and Crexendo
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wisekey and Crexendo is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Crexendo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crexendo 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 Crexendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crexendo has no effect on the direction of Wisekey International i.e., Wisekey International and Crexendo go up and down completely randomly.
Pair Corralation between Wisekey International and Crexendo
Given the investment horizon of 90 days Wisekey International Holding is expected to generate 1.55 times more return on investment than Crexendo. However, Wisekey International is 1.55 times more volatile than Crexendo. It trades about 0.16 of its potential returns per unit of risk. Crexendo is currently generating about -0.11 per unit of risk. If you would invest 205.00 in Wisekey International Holding on August 28, 2024 and sell it today you would earn a total of 34.00 from holding Wisekey International Holding or generate 16.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. Crexendo
Performance |
| Timeline |
| Wisekey International |
| Crexendo |
Wisekey International and Crexendo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Crexendo
The main advantage of trading using opposite Wisekey International and Crexendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Crexendo 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 Crexendo will offset losses from the drop in Crexendo's long position.| Wisekey International vs. Scully Royalty | Wisekey International vs. Donnelley Financial Solutions | Wisekey International vs. Heritage Global | Wisekey International vs. Oppenheimer Holdings |
| Crexendo vs. Tele2 AB | Crexendo vs. Liberty Broadband Srs | Crexendo vs. KT Corporation | Crexendo vs. Liberty Broadband Srs |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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