Correlation Between SemiLEDS and Acm Research
Can any of the company-specific risk be diversified away by investing in both SemiLEDS and Acm Research 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 SemiLEDS and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SemiLEDS and Acm Research, you can compare the effects of market volatilities on SemiLEDS and Acm Research 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 SemiLEDS with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of SemiLEDS and Acm Research.
Diversification Opportunities for SemiLEDS and Acm Research
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SemiLEDS and Acm is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SemiLEDS and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and SemiLEDS 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 SemiLEDS are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of SemiLEDS i.e., SemiLEDS and Acm Research go up and down completely randomly.
Pair Corralation between SemiLEDS and Acm Research
Given the investment horizon of 90 days SemiLEDS is expected to generate 0.78 times more return on investment than Acm Research. However, SemiLEDS is 1.27 times less risky than Acm Research. It trades about 0.25 of its potential returns per unit of risk. Acm Research is currently generating about -0.15 per unit of risk. If you would invest 124.00 in SemiLEDS on September 15, 2024 and sell it today you would earn a total of 24.00 from holding SemiLEDS or generate 19.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
SemiLEDS vs. Acm Research
Performance |
Timeline |
SemiLEDS |
Acm Research |
SemiLEDS and Acm Research Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SemiLEDS and Acm Research
The main advantage of trading using opposite SemiLEDS and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SemiLEDS position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.SemiLEDS vs. Wisekey International Holding | SemiLEDS vs. GSI Technology | SemiLEDS vs. SEALSQ Corp | SemiLEDS vs. WiSA Technologies |
Acm Research vs. Globalfoundries | Acm Research vs. Wisekey International Holding | Acm Research vs. Nano Labs | Acm Research vs. SemiLEDS |
Check out your portfolio center.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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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