Correlation Between Wisekey International and Silicon Laboratories
Can any of the company-specific risk be diversified away by investing in both Wisekey International and Silicon Laboratories 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 Silicon Laboratories 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 Silicon Laboratories, you can compare the effects of market volatilities on Wisekey International and Silicon Laboratories 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 Silicon Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Silicon Laboratories.
Diversification Opportunities for Wisekey International and Silicon Laboratories
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wisekey and Silicon is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Silicon Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Laboratories 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 Silicon Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Laboratories has no effect on the direction of Wisekey International i.e., Wisekey International and Silicon Laboratories go up and down completely randomly.
Pair Corralation between Wisekey International and Silicon Laboratories
Given the investment horizon of 90 days Wisekey International is expected to generate 20.23 times less return on investment than Silicon Laboratories. In addition to that, Wisekey International is 7.95 times more volatile than Silicon Laboratories. It trades about 0.0 of its total potential returns per unit of risk. Silicon Laboratories is currently generating about 0.19 per unit of volatility. If you would invest 12,505 in Silicon Laboratories on November 2, 2024 and sell it today you would earn a total of 1,078 from holding Silicon Laboratories or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Wisekey International Holding vs. Silicon Laboratories
Performance |
| Timeline |
| Wisekey International |
| Silicon Laboratories |
Wisekey International and Silicon Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Silicon Laboratories
The main advantage of trading using opposite Wisekey International and Silicon Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Silicon Laboratories 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 Silicon Laboratories will offset losses from the drop in Silicon Laboratories' long position.| Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
| Silicon Laboratories vs. Diodes Incorporated | Silicon Laboratories vs. MACOM Technology Solutions | Silicon Laboratories vs. FormFactor | Silicon Laboratories vs. Amkor Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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