Correlation Between Wisekey International and GSI Technology
Can any of the company-specific risk be diversified away by investing in both Wisekey International and GSI Technology 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 GSI Technology 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 GSI Technology, you can compare the effects of market volatilities on Wisekey International and GSI Technology 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 GSI Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and GSI Technology.
Diversification Opportunities for Wisekey International and GSI Technology
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wisekey and GSI is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and GSI Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSI Technology 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 GSI Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSI Technology has no effect on the direction of Wisekey International i.e., Wisekey International and GSI Technology go up and down completely randomly.
Pair Corralation between Wisekey International and GSI Technology
Given the investment horizon of 90 days Wisekey International is expected to generate 1.25 times less return on investment than GSI Technology. But when comparing it to its historical volatility, Wisekey International Holding is 1.16 times less risky than GSI Technology. It trades about 0.05 of its potential returns per unit of risk. GSI Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 163.00 in GSI Technology on November 19, 2024 and sell it today you would earn a total of 183.00 from holding GSI Technology or generate 112.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. GSI Technology
Performance |
| Timeline |
| Wisekey International |
| GSI Technology |
Wisekey International and GSI Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and GSI Technology
The main advantage of trading using opposite Wisekey International and GSI Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, GSI Technology 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 GSI Technology will offset losses from the drop in GSI Technology's long position.| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
| GSI Technology vs. SEALSQ Corp | GSI Technology vs. Nano Labs | GSI Technology vs. SemiLEDS | GSI Technology vs. Wisekey International Holding |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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