Correlation Between Wisekey International and Semilux International
Can any of the company-specific risk be diversified away by investing in both Wisekey International and Semilux International 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 Semilux International 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 Semilux International Ltd, you can compare the effects of market volatilities on Wisekey International and Semilux International 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 Semilux International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Semilux International.
Diversification Opportunities for Wisekey International and Semilux International
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wisekey and Semilux is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Semilux International Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semilux International 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 Semilux International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semilux International has no effect on the direction of Wisekey International i.e., Wisekey International and Semilux International go up and down completely randomly.
Pair Corralation between Wisekey International and Semilux International
Given the investment horizon of 90 days Wisekey International Holding is expected to generate 5.62 times more return on investment than Semilux International. However, Wisekey International is 5.62 times more volatile than Semilux International Ltd. It trades about 0.31 of its potential returns per unit of risk. Semilux International Ltd is currently generating about 0.01 per unit of risk. If you would invest 189.00 in Wisekey International Holding on September 16, 2024 and sell it today you would earn a total of 595.00 from holding Wisekey International Holding or generate 314.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. Semilux International Ltd
Performance |
| Timeline |
| Wisekey International |
| Semilux International |
Wisekey International and Semilux International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Semilux International
The main advantage of trading using opposite Wisekey International and Semilux International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Semilux International 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 Semilux International will offset losses from the drop in Semilux International's long position.| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
| Semilux International vs. Globalfoundries | Semilux International vs. Wisekey International Holding | Semilux International vs. Nano Labs | Semilux International vs. SemiLEDS |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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