Correlation Between Intel and SEALSQ Corp

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

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

Diversification Opportunities for Intel and SEALSQ Corp

-0.6

Correlation Coefficient

Intel  SEALSQ Corp

Excellent diversification

The 3 months correlation between Intel and SEALSQ is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Intel and SEALSQ Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEALSQ Corp and Intel 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 Intel 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 Intel i.e., Intel and SEALSQ Corp go up and down completely randomly.

Pair Corralation between Intel and SEALSQ Corp

Given the investment horizon of 90 days Intel is expected to under-perform the SEALSQ Corp. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 4.4 times less risky than SEALSQ Corp. The stock trades about -0.07 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  123.00  in SEALSQ Corp on October 9, 2024 and sell it today you would earn a total of  592.00  from holding SEALSQ Corp or generate 481.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Intel  vs.  SEALSQ Corp

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SEALSQ Corp

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SEALSQ Corp are ranked lower than 22 (%) 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 Intel and SEALSQ Corp

The main advantage of trading using opposite Intel and SEALSQ Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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 Intel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.