Correlation Between SIVERS SEMICONDUCTORS and Hafnia
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Hafnia 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 SIVERS SEMICONDUCTORS and Hafnia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and Hafnia Limited, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Hafnia 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 SIVERS SEMICONDUCTORS with a short position of Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Hafnia.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Hafnia
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIVERS and Hafnia is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited and SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS AB are associated (or correlated) with Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Hafnia go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Hafnia
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Hafnia. In addition to that, SIVERS SEMICONDUCTORS is 2.01 times more volatile than Hafnia Limited. It trades about -0.03 of its total potential returns per unit of risk. Hafnia Limited is currently generating about 0.04 per unit of volatility. If you would invest 383.00 in Hafnia Limited on September 12, 2024 and sell it today you would earn a total of 115.00 from holding Hafnia Limited or generate 30.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.7% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Hafnia Limited
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Hafnia Limited |
SIVERS SEMICONDUCTORS and Hafnia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Hafnia
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.| SIVERS SEMICONDUCTORS vs. Taiwan Semiconductor Manufacturing | SIVERS SEMICONDUCTORS vs. Broadcom | SIVERS SEMICONDUCTORS vs. Superior Plus Corp | SIVERS SEMICONDUCTORS vs. Norsk Hydro ASA |
| Hafnia vs. Superior Plus Corp | Hafnia vs. SIVERS SEMICONDUCTORS AB | Hafnia vs. CHINA HUARONG ENERHD 50 | Hafnia vs. NORDIC HALIBUT AS |
Check out your portfolio center.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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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