Correlation Between SEALSQ Corp and United Microelectronics

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

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

Diversification Opportunities for SEALSQ Corp and United Microelectronics

0.03

Correlation Coefficient

SEALSQ Corp  United Microelectronics

Significant diversification

The 3 months correlation between SEALSQ and United is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SEALSQ Corp and United Microelectronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Microelectronics 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 United Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Microelectronics has no effect on the direction of SEALSQ Corp i.e., SEALSQ Corp and United Microelectronics go up and down completely randomly.

Pair Corralation between SEALSQ Corp and United Microelectronics

Given the investment horizon of 90 days SEALSQ Corp is expected to under-perform the United Microelectronics. In addition to that, SEALSQ Corp is 6.47 times more volatile than United Microelectronics. It trades about -0.08 of its total potential returns per unit of risk. United Microelectronics is currently generating about 0.01 per unit of volatility. If you would invest  651.00  in United Microelectronics on December 28, 2024 and sell it today you would earn a total of  4.00  from holding United Microelectronics or generate 0.61% return on investment over 90 days.

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

SEALSQ Corp  vs.  United Microelectronics

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.

United Microelectronics

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in United Microelectronics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, United Microelectronics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SEALSQ Corp and United Microelectronics

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

The idea behind SEALSQ Corp and United Microelectronics 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.