Correlation Between Vuzix Corp and SemiLEDS

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

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

Diversification Opportunities for Vuzix Corp and SemiLEDS

0.74

Correlation Coefficient

Vuzix Corp  SemiLEDS

Poor diversification

The 3 months correlation between Vuzix and SemiLEDS is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and SemiLEDS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SemiLEDS and Vuzix Corp 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 Vuzix Corp Cmn 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 Vuzix Corp i.e., Vuzix Corp and SemiLEDS go up and down completely randomly.

Pair Corralation between Vuzix Corp and SemiLEDS

Given the investment horizon of 90 days Vuzix Corp Cmn is expected to generate 1.27 times more return on investment than SemiLEDS. However, Vuzix Corp is 1.27 times more volatile than SemiLEDS. It trades about 0.07 of its potential returns per unit of risk. SemiLEDS is currently generating about -0.04 per unit of risk. If you would invest  196.00  in Vuzix Corp Cmn on April 29, 2025 and sell it today you would earn a total of  31.00  from holding Vuzix Corp Cmn or generate 15.82% return on investment over 90 days.

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

Vuzix Corp Cmn  vs.  SemiLEDS

Vuzix Corp Cmn

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Vuzix Corp Cmn are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Vuzix Corp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 Vuzix Corp and SemiLEDS

The main advantage of trading using opposite Vuzix Corp and SemiLEDS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vuzix Corp 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 Vuzix Corp Cmn 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..