Correlation Between SemiLEDS and ReposiTrak

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

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

Diversification Opportunities for SemiLEDS and ReposiTrak

0.51

Correlation Coefficient

SemiLEDS  ReposiTrak

Very weak diversification

The 3 months correlation between SemiLEDS and ReposiTrak is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SemiLEDS and ReposiTrak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReposiTrak 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 ReposiTrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReposiTrak has no effect on the direction of SemiLEDS i.e., SemiLEDS and ReposiTrak go up and down completely randomly.

Pair Corralation between SemiLEDS and ReposiTrak

Given the investment horizon of 90 days SemiLEDS is expected to generate 2.74 times more return on investment than ReposiTrak. However, SemiLEDS is 2.74 times more volatile than ReposiTrak. It trades about -0.04 of its potential returns per unit of risk. ReposiTrak is currently generating about -0.23 per unit of risk. If you would invest  222.00  in SemiLEDS on May 2, 2025 and sell it today you would lose (37.00) from holding SemiLEDS or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

SemiLEDS  vs.  ReposiTrak

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.

ReposiTrak

Risk-Adjusted Performance

Very Weak

Over the last 90 days ReposiTrak has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in August 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with SemiLEDS and ReposiTrak

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

The idea behind SemiLEDS and ReposiTrak 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 CEOs Directory module to screen CEOs from public companies around the world.