Correlation Between Advent Technologies and SemiLEDS
Can any of the company-specific risk be diversified away by investing in both Advent Technologies 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 Advent Technologies and SemiLEDS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advent Technologies Holdings and SemiLEDS, you can compare the effects of market volatilities on Advent Technologies 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 Advent Technologies with a short position of SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and SemiLEDS.
Diversification Opportunities for Advent Technologies and SemiLEDS
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Advent and SemiLEDS is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Advent Technologies 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 Advent Technologies Holdings 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 Advent Technologies i.e., Advent Technologies and SemiLEDS go up and down completely randomly.
Pair Corralation between Advent Technologies and SemiLEDS
Considering the 90-day investment horizon Advent Technologies Holdings is expected to generate 1.68 times more return on investment than SemiLEDS. However, Advent Technologies is 1.68 times more volatile than SemiLEDS. It trades about 0.06 of its potential returns per unit of risk. SemiLEDS is currently generating about -0.03 per unit of risk. If you would invest 197.00 in Advent Technologies Holdings on April 24, 2025 and sell it today you would earn a total of 23.00 from holding Advent Technologies Holdings or generate 11.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Advent Technologies Holdings vs. SemiLEDS
Performance |
Timeline |
Advent Technologies |
SemiLEDS |
Advent Technologies and SemiLEDS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advent Technologies and SemiLEDS
The main advantage of trading using opposite Advent Technologies and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies 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.Advent Technologies vs. Advent Technologies Holdings | Advent Technologies vs. AgriFORCE Growing Systems | Advent Technologies vs. Azure Power Global | Advent Technologies vs. Ensysce Biosciences |
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 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.
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