Correlation Between SEALSQ Corp and Nano Labs

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

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

Diversification Opportunities for SEALSQ Corp and Nano Labs

0.57

Correlation Coefficient

SEALSQ Corp  Nano Labs

Very weak diversification

The 3 months correlation between SEALSQ and Nano is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SEALSQ Corp and Nano Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Labs and SEALSQ Corp 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 SEALSQ Corp are associated (or correlated) with Nano Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Labs has no effect on the direction of SEALSQ Corp i.e., SEALSQ Corp and Nano Labs go up and down completely randomly.

Pair Corralation between SEALSQ Corp and Nano Labs

Given the investment horizon of 90 days SEALSQ Corp is expected to under-perform the Nano Labs. In addition to that, SEALSQ Corp is 2.03 times more volatile than Nano Labs. It trades about -0.07 of its total potential returns per unit of risk. Nano Labs is currently generating about -0.09 per unit of volatility. If you would invest  775.00  in Nano Labs on December 27, 2024 and sell it today you would lose (288.00) from holding Nano Labs or give up 37.16% of portfolio value over 90 days.

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

SEALSQ Corp  vs.  Nano Labs

SEALSQ Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days SEALSQ Corp 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 technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Nano Labs

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nano Labs has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Etf's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the ETF investors.

Pair Trading with SEALSQ Corp and Nano Labs

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

The idea behind SEALSQ Corp and Nano Labs 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.