Correlation Between Wisekey International and SemiLEDS
Can any of the company-specific risk be diversified away by investing in both Wisekey International 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 Wisekey International and SemiLEDS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisekey International Holding and SemiLEDS, you can compare the effects of market volatilities on Wisekey International 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 Wisekey International with a short position of SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and SemiLEDS.
Diversification Opportunities for Wisekey International and SemiLEDS
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wisekey and SemiLEDS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Wisekey International 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 Wisekey International Holding 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 Wisekey International i.e., Wisekey International and SemiLEDS go up and down completely randomly.
Pair Corralation between Wisekey International and SemiLEDS
Given the investment horizon of 90 days Wisekey International Holding is expected to generate 1.05 times more return on investment than SemiLEDS. However, Wisekey International is 1.05 times more volatile than SemiLEDS. It trades about 0.0 of its potential returns per unit of risk. SemiLEDS is currently generating about -0.11 per unit of risk. If you would invest 605.00 in Wisekey International Holding on May 31, 2025 and sell it today you would lose (50.00) from holding Wisekey International Holding or give up 8.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. SemiLEDS
Performance |
| Timeline |
| Wisekey International |
| SemiLEDS |
Wisekey International and SemiLEDS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and SemiLEDS
The main advantage of trading using opposite Wisekey International and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International 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.| Wisekey International vs. Dolphin Entertainment | Wisekey International vs. GSI Technology | Wisekey International vs. Jiayin Group | Wisekey International vs. SEALSQ Corp |
| SemiLEDS vs. Nano Labs | SemiLEDS vs. ChipMOS Technologies | SemiLEDS vs. Wisekey International Holding | SemiLEDS vs. Silicon Motion Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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