Correlation Between SEVENI HLDGS and WEEBIT NANO

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

By analyzing existing cross correlation between SEVENI HLDGS UNSPADR12 and WEEBIT NANO LTD, you can compare the effects of market volatilities on SEVENI HLDGS and WEEBIT NANO 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 SEVENI HLDGS with a short position of WEEBIT NANO. Check out your portfolio center. Please also check ongoing floating volatility patterns of SEVENI HLDGS and WEEBIT NANO.

Diversification Opportunities for SEVENI HLDGS and WEEBIT NANO

-0.36

Correlation Coefficient

SEVENI HLDGS  WEEBIT NANO

Very good diversification

The 3 months correlation between SEVENI and WEEBIT is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding SEVENI HLDGS UNSPADR12 and WEEBIT NANO LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEEBIT NANO LTD and SEVENI HLDGS 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 SEVENI HLDGS UNSPADR12 are associated (or correlated) with WEEBIT NANO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEEBIT NANO LTD has no effect on the direction of SEVENI HLDGS i.e., SEVENI HLDGS and WEEBIT NANO go up and down completely randomly.

Pair Corralation between SEVENI HLDGS and WEEBIT NANO

Assuming the 90 days trading horizon SEVENI HLDGS UNSPADR12 is expected to under-perform the WEEBIT NANO. But the stock apears to be less risky and, when comparing its historical volatility, SEVENI HLDGS UNSPADR12 is 2.69 times less risky than WEEBIT NANO. The stock trades about -0.06 of its potential returns per unit of risk. The WEEBIT NANO LTD is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  93.00  in WEEBIT NANO LTD on April 25, 2025 and sell it today you would earn a total of  22.00  from holding WEEBIT NANO LTD or generate 23.66% return on investment over 90 days.

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

SEVENI HLDGS UNSPADR12  vs.  WEEBIT NANO LTD

SEVENI HLDGS UNSPADR12

Risk-Adjusted Performance

Very Weak

Over the last 90 days SEVENI HLDGS UNSPADR12 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

WEEBIT NANO LTD

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in WEEBIT NANO LTD are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, WEEBIT NANO reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SEVENI HLDGS and WEEBIT NANO

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

The idea behind SEVENI HLDGS UNSPADR12 and WEEBIT NANO LTD 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.