Correlation Between Moxian and SemiLEDS

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

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

Diversification Opportunities for Moxian and SemiLEDS

0.0

Correlation Coefficient

Moxian  SemiLEDS

Pay attention - limited upside

The 3 months correlation between Moxian and SemiLEDS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Moxian Inc and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Moxian 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 Moxian Inc 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 Moxian i.e., Moxian and SemiLEDS go up and down completely randomly.

Pair Corralation between Moxian and SemiLEDS

If you would invest  129.00  in SemiLEDS on October 11, 2024 and sell it today you would earn a total of  6.00  from holding SemiLEDS or generate 4.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.0%
Values	Daily Returns

Moxian Inc  vs.  SemiLEDS

Moxian Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moxian Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Moxian is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

SemiLEDS

Risk-Adjusted Performance

3 of 100

Insignificant

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 Moxian and SemiLEDS

The main advantage of trading using opposite Moxian and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moxian 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 Moxian Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.