Correlation Between Wisekey International and SEALSQ Corp
Can any of the company-specific risk be diversified away by investing in both Wisekey International and SEALSQ 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 SEALSQ 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 SEALSQ Corp, you can compare the effects of market volatilities on Wisekey International and SEALSQ 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 SEALSQ Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and SEALSQ Corp.
Diversification Opportunities for Wisekey International and SEALSQ Corp
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wisekey and SEALSQ is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and SEALSQ Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALSQ Corp 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 SEALSQ Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEALSQ Corp has no effect on the direction of Wisekey International i.e., Wisekey International and SEALSQ Corp go up and down completely randomly.
Pair Corralation between Wisekey International and SEALSQ Corp
Given the investment horizon of 90 days Wisekey International is expected to generate 1.43 times less return on investment than SEALSQ Corp. But when comparing it to its historical volatility, Wisekey International Holding is 1.05 times less risky than SEALSQ Corp. It trades about 0.18 of its potential returns per unit of risk. SEALSQ Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 38.00 in SEALSQ Corp on November 1, 2024 and sell it today you would earn a total of 283.00 from holding SEALSQ Corp or generate 744.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. SEALSQ Corp
Performance |
| Timeline |
| Wisekey International |
| SEALSQ Corp |
Wisekey International and SEALSQ Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and SEALSQ Corp
The main advantage of trading using opposite Wisekey International and SEALSQ Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, SEALSQ 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 SEALSQ Corp will offset losses from the drop in SEALSQ Corp's long position.| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
| SEALSQ Corp vs. Asure Software | SEALSQ Corp vs. Boston Omaha Corp | SEALSQ Corp vs. Bill Com Holdings | SEALSQ Corp vs. Cadence Design Systems |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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