Correlation Between AMCON Distributing and SEALSQ Corp

Can any of the company-specific risk be diversified away by investing in both AMCON Distributing 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 AMCON Distributing and SEALSQ Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMCON Distributing and SEALSQ Corp, you can compare the effects of market volatilities on AMCON Distributing 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 AMCON Distributing with a short position of SEALSQ Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMCON Distributing and SEALSQ Corp.

Diversification Opportunities for AMCON Distributing and SEALSQ Corp

0.04

Correlation Coefficient

AMCON Distributing  SEALSQ Corp

Significant diversification

The 3 months correlation between AMCON and SEALSQ is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AMCON Distributing and SEALSQ Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALSQ Corp and AMCON Distributing 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 AMCON Distributing 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 AMCON Distributing i.e., AMCON Distributing and SEALSQ Corp go up and down completely randomly.

Pair Corralation between AMCON Distributing and SEALSQ Corp

Considering the 90-day investment horizon AMCON Distributing is expected to under-perform the SEALSQ Corp. But the stock apears to be less risky and, when comparing its historical volatility, AMCON Distributing is 4.1 times less risky than SEALSQ Corp. The stock trades about -0.01 of its potential returns per unit of risk. The SEALSQ Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  87.00  in SEALSQ Corp on September 22, 2024 and sell it today you would earn a total of  188.00  from holding SEALSQ Corp or generate 216.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.43%
Values	Daily Returns

AMCON Distributing  vs.  SEALSQ Corp

AMCON Distributing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMCON Distributing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, AMCON Distributing is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

SEALSQ Corp

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SEALSQ Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, SEALSQ Corp unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMCON Distributing and SEALSQ Corp

The main advantage of trading using opposite AMCON Distributing and SEALSQ Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMCON Distributing 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.

The idea behind AMCON Distributing and SEALSQ Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.