Correlation Between ReposiTrak and SemiLEDS

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

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

Diversification Opportunities for ReposiTrak and SemiLEDS

0.59

Correlation Coefficient

ReposiTrak  SemiLEDS

Very weak diversification

The 3 months correlation between ReposiTrak and SemiLEDS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding ReposiTrak and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and ReposiTrak 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 ReposiTrak 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 ReposiTrak i.e., ReposiTrak and SemiLEDS go up and down completely randomly.

Pair Corralation between ReposiTrak and SemiLEDS

Given the investment horizon of 90 days ReposiTrak is expected to under-perform the SemiLEDS. But the stock apears to be less risky and, when comparing its historical volatility, ReposiTrak is 2.91 times less risky than SemiLEDS. The stock trades about -0.27 of its potential returns per unit of risk. The SemiLEDS is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest  223.00  in SemiLEDS on May 8, 2025 and sell it today you would lose (66.00) from holding SemiLEDS or give up 29.6% of portfolio value over 90 days.

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

ReposiTrak  vs.  SemiLEDS

ReposiTrak

Risk-Adjusted Performance

Weakest

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

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 September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with ReposiTrak and SemiLEDS

The main advantage of trading using opposite ReposiTrak and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ReposiTrak 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 ReposiTrak 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.