Correlation Between MicroCloud Hologram and SemiLEDS

Can any of the company-specific risk be diversified away by investing in both MicroCloud Hologram 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 MicroCloud Hologram and SemiLEDS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MicroCloud Hologram and SemiLEDS, you can compare the effects of market volatilities on MicroCloud Hologram 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 MicroCloud Hologram with a short position of SemiLEDS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MicroCloud Hologram and SemiLEDS.

Diversification Opportunities for MicroCloud Hologram and SemiLEDS

-0.37

Correlation Coefficient

MicroCloud Hologram  SemiLEDS

Very good diversification

The 3 months correlation between MicroCloud and SemiLEDS is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding MicroCloud Hologram and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and MicroCloud Hologram 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 MicroCloud Hologram 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 MicroCloud Hologram i.e., MicroCloud Hologram and SemiLEDS go up and down completely randomly.

Pair Corralation between MicroCloud Hologram and SemiLEDS

Given the investment horizon of 90 days MicroCloud Hologram is expected to under-perform the SemiLEDS. In addition to that, MicroCloud Hologram is 2.41 times more volatile than SemiLEDS. It trades about -0.06 of its total potential returns per unit of risk. SemiLEDS is currently generating about -0.03 per unit of volatility. If you would invest  224.00  in SemiLEDS on April 28, 2025 and sell it today you would lose (34.00) from holding SemiLEDS or give up 15.18% of portfolio value over 90 days.

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

MicroCloud Hologram  vs.  SemiLEDS

MicroCloud Hologram

Risk-Adjusted Performance

Very Weak

Over the last 90 days MicroCloud Hologram has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's essential indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

SemiLEDS

Risk-Adjusted Performance

Very Weak

Over the last 90 days SemiLEDS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with MicroCloud Hologram and SemiLEDS

The main advantage of trading using opposite MicroCloud Hologram and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MicroCloud Hologram 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.

The idea behind MicroCloud Hologram and SemiLEDS 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.