Correlation Between Global Crossing and SemiLEDS

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

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

Diversification Opportunities for Global Crossing and SemiLEDS

0.68

Correlation Coefficient

Global Crossing  SemiLEDS

Poor diversification

The 3 months correlation between Global and SemiLEDS is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Global Crossing Airlines and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Global Crossing 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 Global Crossing Airlines 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 Global Crossing i.e., Global Crossing and SemiLEDS go up and down completely randomly.

Pair Corralation between Global Crossing and SemiLEDS

Assuming the 90 days horizon Global Crossing Airlines is expected to under-perform the SemiLEDS. But the otc stock apears to be less risky and, when comparing its historical volatility, Global Crossing Airlines is 1.49 times less risky than SemiLEDS. The otc stock trades about -0.02 of its potential returns per unit of risk. The SemiLEDS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  166.00  in SemiLEDS on September 4, 2025 and sell it today you would earn a total of  19.00  from holding SemiLEDS or generate 11.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Global Crossing Airlines  vs.  SemiLEDS

Global Crossing Airlines

Risk-Adjusted Performance

Weakest

Over the last 90 days Global Crossing Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Global Crossing is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SemiLEDS

Risk-Adjusted Performance

Soft

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

Pair Trading with Global Crossing and SemiLEDS

The main advantage of trading using opposite Global Crossing and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Crossing 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 Global Crossing Airlines 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..