Correlation Between SemiLEDS and Dolphin Entertainment

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

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

Diversification Opportunities for SemiLEDS and Dolphin Entertainment

0.05

Correlation Coefficient

SemiLEDS  Dolphin Entertainment

Significant diversification

The 3 months correlation between SemiLEDS and Dolphin is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SemiLEDS and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment and SemiLEDS 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 SemiLEDS are associated (or correlated) with Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of SemiLEDS i.e., SemiLEDS and Dolphin Entertainment go up and down completely randomly.

Pair Corralation between SemiLEDS and Dolphin Entertainment

Given the investment horizon of 90 days SemiLEDS is expected to under-perform the Dolphin Entertainment. In addition to that, SemiLEDS is 1.15 times more volatile than Dolphin Entertainment. It trades about -0.11 of its total potential returns per unit of risk. Dolphin Entertainment is currently generating about 0.07 per unit of volatility. If you would invest  105.00  in Dolphin Entertainment on June 2, 2025 and sell it today you would earn a total of  14.00  from holding Dolphin Entertainment or generate 13.33% return on investment over 90 days.

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

SemiLEDS  vs.  Dolphin Entertainment

SemiLEDS

Risk-Adjusted Performance

Weakest

Over the last 90 days SemiLEDS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in October 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Dolphin Entertainment

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Dolphin Entertainment are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Dolphin Entertainment displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SemiLEDS and Dolphin Entertainment

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

The idea behind SemiLEDS and Dolphin Entertainment 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.