Correlation Between Wisekey International and Oriental Culture
Can any of the company-specific risk be diversified away by investing in both Wisekey International and Oriental Culture 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 Oriental Culture 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 Oriental Culture Holding, you can compare the effects of market volatilities on Wisekey International and Oriental Culture 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 Oriental Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Oriental Culture.
Diversification Opportunities for Wisekey International and Oriental Culture
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wisekey and Oriental is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Oriental Culture Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Culture Holding 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 Oriental Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Culture Holding has no effect on the direction of Wisekey International i.e., Wisekey International and Oriental Culture go up and down completely randomly.
Pair Corralation between Wisekey International and Oriental Culture
Given the investment horizon of 90 days Wisekey International Holding is expected to under-perform the Oriental Culture. But the stock apears to be less risky and, when comparing its historical volatility, Wisekey International Holding is 1.1 times less risky than Oriental Culture. The stock trades about -0.01 of its potential returns per unit of risk. The Oriental Culture Holding is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Oriental Culture Holding on August 27, 2024 and sell it today you would lose (222.00) from holding Oriental Culture Holding or give up 63.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. Oriental Culture Holding
Performance |
| Timeline |
| Wisekey International |
| Oriental Culture Holding |
Wisekey International and Oriental Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Oriental Culture
The main advantage of trading using opposite Wisekey International and Oriental Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Oriental Culture 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 Oriental Culture will offset losses from the drop in Oriental Culture's long position.| Wisekey International vs. Scully Royalty | Wisekey International vs. Donnelley Financial Solutions | Wisekey International vs. Heritage Global | Wisekey International vs. Oppenheimer Holdings |
| Oriental Culture vs. Hour Loop | Oriental Culture vs. Jowell Global | Oriental Culture vs. Qurate Retail Series | Oriental Culture vs. Emerge Commerce |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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