Correlation Between Wisekey International and Intel

Can any of the company-specific risk be diversified away by investing in both Wisekey International and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on Wisekey International and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and Intel.

Diversification Opportunities for Wisekey International and Intel

-0.52

Correlation Coefficient

Wisekey International  Intel

Excellent diversification

The 3 months correlation between Wisekey and Intel is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Wisekey International i.e., Wisekey International and Intel go up and down completely randomly.

Pair Corralation between Wisekey International and Intel

Given the investment horizon of 90 days Wisekey International Holding is expected to generate 2.11 times more return on investment than Intel. However, Wisekey International is 2.11 times more volatile than Intel. It trades about 0.01 of its potential returns per unit of risk. Intel is currently generating about 0.0 per unit of risk. If you would invest  454.00  in Wisekey International Holding on September 13, 2024 and sell it today you would lose (214.00) from holding Wisekey International Holding or give up 47.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Wisekey International Holding  vs.  Intel

Wisekey International

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Wisekey International Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Wisekey International showed solid returns over the last few months and may actually be approaching a breakup point.

Intel

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Intel is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Wisekey International and Intel

The main advantage of trading using opposite Wisekey International and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.

The idea behind Wisekey International Holding and Intel 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..