Correlation Between Wisekey International and Elite Education

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

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

Diversification Opportunities for Wisekey International and Elite Education

-0.43

Correlation Coefficient

Wisekey International  Elite Education

Very good diversification

The 3 months correlation between Wisekey and Elite is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding and Elite Education Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Education Group and Wisekey International 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 Wisekey International Holding are associated (or correlated) with Elite Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Education Group has no effect on the direction of Wisekey International i.e., Wisekey International and Elite Education go up and down completely randomly.

Pair Corralation between Wisekey International and Elite Education

Given the investment horizon of 90 days Wisekey International Holding is expected to generate 0.71 times more return on investment than Elite Education. However, Wisekey International Holding is 1.4 times less risky than Elite Education. It trades about 0.09 of its potential returns per unit of risk. Elite Education Group is currently generating about 0.01 per unit of risk. If you would invest  423.00  in Wisekey International Holding on May 5, 2025 and sell it today you would earn a total of  104.00  from holding Wisekey International Holding or generate 24.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Wisekey International Holding  vs.  Elite Education Group

Wisekey International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Wisekey International Holding are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Wisekey International showed solid returns over the last few months and may actually be approaching a breakup point.

Elite Education Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elite Education Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively fragile forward indicators, Elite Education may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Wisekey International and Elite Education

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

The idea behind Wisekey International Holding and Elite Education Group 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.