Correlation Between Nordic Semiconductor and Wisekey International
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor 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 Nordic Semiconductor and Wisekey International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Wisekey International Holding, you can compare the effects of market volatilities on Nordic Semiconductor 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 Nordic Semiconductor with a short position of Wisekey International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Wisekey International.
Diversification Opportunities for Nordic Semiconductor and Wisekey International
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and Wisekey is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Wisekey International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wisekey International and Nordic Semiconductor 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 Nordic Semiconductor ASA 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 Nordic Semiconductor i.e., Nordic Semiconductor and Wisekey International go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Wisekey International
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to under-perform the Wisekey International. But the pink sheet apears to be less risky and, when comparing its historical volatility, Nordic Semiconductor ASA is 2.36 times less risky than Wisekey International. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Wisekey International Holding is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 463.00 in Wisekey International Holding on September 25, 2024 and sell it today you would earn a total of 471.50 from holding Wisekey International Holding or generate 101.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nordic Semiconductor ASA vs. Wisekey International Holding
Performance |
Timeline |
Nordic Semiconductor ASA |
Wisekey International |
Nordic Semiconductor and Wisekey International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nordic Semiconductor and Wisekey International
The main advantage of trading using opposite Nordic Semiconductor and Wisekey International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor 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.Nordic Semiconductor vs. Alphawave IP Group | Nordic Semiconductor vs. Arteris | Nordic Semiconductor vs. Odyssey Semiconductor Technologies | Nordic Semiconductor vs. Intchains Group Limited |
Wisekey International vs. SemiLEDS | Wisekey International vs. GSI Technology | Wisekey International vs. SEALSQ Corp | Wisekey International vs. WiSA Technologies |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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