Correlation Between SEALSQ Corp and Wisekey International

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

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

Diversification Opportunities for SEALSQ Corp and Wisekey International

0.86

Correlation Coefficient

SEALSQ Corp  Wisekey International

Very poor diversification

The 3 months correlation between SEALSQ and Wisekey is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding SEALSQ Corp and Wisekey International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisekey International 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 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 SEALSQ Corp i.e., SEALSQ Corp and Wisekey International go up and down completely randomly.

Pair Corralation between SEALSQ Corp and Wisekey International

Given the investment horizon of 90 days SEALSQ Corp is expected to under-perform the Wisekey International. In addition to that, SEALSQ Corp is 1.12 times more volatile than Wisekey International Holding. It trades about -0.08 of its total potential returns per unit of risk. Wisekey International Holding is currently generating about -0.09 per unit of volatility. If you would invest  1,085  in Wisekey International Holding on December 29, 2024 and sell it today you would lose (690.00) from holding Wisekey International Holding or give up 63.59% of portfolio value over 90 days.

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

SEALSQ Corp  vs.  Wisekey International Holding

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.

Wisekey International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wisekey International Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain fairly 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 company investors.

Pair Trading with SEALSQ Corp and Wisekey International

The main advantage of trading using opposite SEALSQ Corp and Wisekey International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEALSQ Corp 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 SEALSQ Corp 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .