Correlation Between SEALSQ Corp and SemiLEDS

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

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

Diversification Opportunities for SEALSQ Corp and SemiLEDS

0.0

Correlation Coefficient

SEALSQ Corp  SemiLEDS

Pay attention - limited upside

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

Pair Corralation between SEALSQ Corp and SemiLEDS

Assuming the 90 days horizon SEALSQ Corp Ordinary is expected to generate 82.35 times more return on investment than SemiLEDS. However, SEALSQ Corp is 82.35 times more volatile than SemiLEDS. It trades about 0.49 of its potential returns per unit of risk. SemiLEDS is currently generating about 0.02 per unit of risk. If you would invest  0.00  in SEALSQ Corp Ordinary on September 19, 2024 and sell it today you would earn a total of  2,197  from holding SEALSQ Corp Ordinary or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.01%
Values	Daily Returns

SEALSQ Corp Ordinary  vs.  SemiLEDS

SEALSQ Corp Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SEALSQ Corp Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, SEALSQ Corp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

SemiLEDS

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SemiLEDS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, SemiLEDS unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEALSQ Corp and SemiLEDS

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

The idea behind SEALSQ Corp Ordinary and SemiLEDS 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.