Correlation Between Wisekey International and Recon Technology
Can any of the company-specific risk be diversified away by investing in both Wisekey International and Recon Technology 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 Recon Technology 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 Recon Technology, you can compare the effects of market volatilities on Wisekey International and Recon Technology 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 Recon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Recon Technology.
Diversification Opportunities for Wisekey International and Recon Technology
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wisekey and Recon is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Recon Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Recon Technology 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 Recon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Recon Technology has no effect on the direction of Wisekey International i.e., Wisekey International and Recon Technology go up and down completely randomly.
Pair Corralation between Wisekey International and Recon Technology
Given the investment horizon of 90 days Wisekey International Holding is expected to under-perform the Recon Technology. But the stock apears to be less risky and, when comparing its historical volatility, Wisekey International Holding is 2.68 times less risky than Recon Technology. The stock trades about -0.06 of its potential returns per unit of risk. The Recon Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 216.00 in Recon Technology on June 4, 2025 and sell it today you would lose (5.00) from holding Recon Technology or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Wisekey International Holding vs. Recon Technology
Performance |
| Timeline |
| Wisekey International |
| Recon Technology |
Wisekey International and Recon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and Recon Technology
The main advantage of trading using opposite Wisekey International and Recon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Recon Technology 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 Recon Technology will offset losses from the drop in Recon Technology's long position.| Wisekey International vs. Dolphin Entertainment | Wisekey International vs. GSI Technology | Wisekey International vs. Jiayin Group | Wisekey International vs. SEALSQ Corp |
| Recon Technology vs. Flotek Industries | Recon Technology vs. Nextmart | Recon Technology vs. SemiLEDS | Recon Technology vs. LM Funding America |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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