Correlation Between Go Solar and Wisekey International

Can any of the company-specific risk be diversified away by investing in both Go Solar and Wisekey 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 Go Solar and Wisekey International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Go Solar USA and Wisekey International Holding, you can compare the effects of market volatilities on Go Solar and Wisekey 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 Go Solar with a short position of Wisekey International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Go Solar and Wisekey International.

Diversification Opportunities for Go Solar and Wisekey International

0.0

Correlation Coefficient

Go Solar  Wisekey International

Pay attention - limited upside

The 3 months correlation between GSLO and Wisekey is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Go Solar USA and Wisekey International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisekey International and Go Solar 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 Go Solar USA are associated (or correlated) with Wisekey International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wisekey International has no effect on the direction of Go Solar i.e., Go Solar and Wisekey International go up and down completely randomly.

Pair Corralation between Go Solar and Wisekey International

If you would invest  229.00  in Wisekey International Holding on September 18, 2024 and sell it today you would earn a total of  971.00  from holding Wisekey International Holding or generate 424.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Go Solar USA  vs.  Wisekey International Holding

Go Solar USA

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Go Solar USA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Go Solar is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Wisekey International

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wisekey International Holding are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Wisekey International showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Go Solar and Wisekey International

The main advantage of trading using opposite Go Solar and Wisekey International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Go Solar position performs unexpectedly, Wisekey 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 Wisekey International will offset losses from the drop in Wisekey International's long position.

The idea behind Go Solar USA and Wisekey International Holding 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 Anywhere module to track or share privately all of your investments from the convenience of any device.