Correlation Between SIVERS SEMICONDUCTORS and GPT
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and GPT 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 GPT 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 GPT Group, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and GPT 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 GPT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and GPT.
Diversification Opportunities for SIVERS SEMICONDUCTORS and GPT
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIVERS and GPT is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and GPT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPT Group 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 GPT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPT Group has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and GPT go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and GPT
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 3.76 times more return on investment than GPT. However, SIVERS SEMICONDUCTORS is 3.76 times more volatile than GPT Group. It trades about 0.01 of its potential returns per unit of risk. GPT Group is currently generating about -0.07 per unit of risk. If you would invest 17.00 in SIVERS SEMICONDUCTORS AB on September 13, 2024 and sell it today you would lose (1.00) from holding SIVERS SEMICONDUCTORS AB or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. GPT Group
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| GPT Group |
SIVERS SEMICONDUCTORS and GPT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and GPT
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and GPT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, GPT 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 GPT will offset losses from the drop in GPT's long position.| SIVERS SEMICONDUCTORS vs. REGAL ASIAN INVESTMENTS | SIVERS SEMICONDUCTORS vs. Monster Beverage Corp | SIVERS SEMICONDUCTORS vs. SLR Investment Corp | SIVERS SEMICONDUCTORS vs. PennyMac Mortgage Investment |
| GPT vs. Shin Etsu Chemical Co | GPT vs. MagnaChip Semiconductor Corp | GPT vs. Sanyo Chemical Industries | GPT vs. Nordic Semiconductor ASA |
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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