Correlation Between SIVERS SEMICONDUCTORS and CapitaLand Investment
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and CapitaLand Investment 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 CapitaLand Investment 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 CapitaLand Investment Limited, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and CapitaLand Investment 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 CapitaLand Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and CapitaLand Investment.
Diversification Opportunities for SIVERS SEMICONDUCTORS and CapitaLand Investment
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and CapitaLand is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and CapitaLand Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Investment 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 CapitaLand Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Investment has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and CapitaLand Investment go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and CapitaLand Investment
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 2.68 times more return on investment than CapitaLand Investment. However, SIVERS SEMICONDUCTORS is 2.68 times more volatile than CapitaLand Investment Limited. It trades about 0.24 of its potential returns per unit of risk. CapitaLand Investment Limited is currently generating about 0.07 per unit of risk. If you would invest 26.00 in SIVERS SEMICONDUCTORS AB on November 28, 2024 and sell it today you would earn a total of 8.00 from holding SIVERS SEMICONDUCTORS AB or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. CapitaLand Investment Limited
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| CapitaLand Investment |
SIVERS SEMICONDUCTORS and CapitaLand Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and CapitaLand Investment
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and CapitaLand Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, CapitaLand Investment 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 CapitaLand Investment will offset losses from the drop in CapitaLand Investment's long position.| SIVERS SEMICONDUCTORS vs. GOME Retail Holdings | SIVERS SEMICONDUCTORS vs. MARKET VECTR RETAIL | SIVERS SEMICONDUCTORS vs. Casio Computer CoLtd | SIVERS SEMICONDUCTORS vs. Computershare Limited |
| CapitaLand Investment vs. COSTAR GROUP INC | CapitaLand Investment vs. CBRE Group Class | CapitaLand Investment vs. VONOVIA SE ADR | CapitaLand Investment vs. Vonovia SE |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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