Correlation Between SIVERS SEMICONDUCTORS and AEON MALL
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and AEON MALL 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 AEON MALL 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 AEON MALL LTD, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and AEON MALL 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 AEON MALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and AEON MALL.
Diversification Opportunities for SIVERS SEMICONDUCTORS and AEON MALL
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIVERS and AEON is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and AEON MALL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON MALL LTD 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 AEON MALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON MALL LTD has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and AEON MALL go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and AEON MALL
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the AEON MALL. In addition to that, SIVERS SEMICONDUCTORS is 3.71 times more volatile than AEON MALL LTD. It trades about -0.02 of its total potential returns per unit of risk. AEON MALL LTD is currently generating about 0.01 per unit of volatility. If you would invest 1,160 in AEON MALL LTD on August 29, 2024 and sell it today you would earn a total of 50.00 from holding AEON MALL LTD or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. AEON MALL LTD
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| AEON MALL LTD |
SIVERS SEMICONDUCTORS and AEON MALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and AEON MALL
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and AEON MALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, AEON MALL 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 AEON MALL will offset losses from the drop in AEON MALL's long position.| SIVERS SEMICONDUCTORS vs. ELMOS SEMICONDUCTOR | SIVERS SEMICONDUCTORS vs. NXP Semiconductors NV | SIVERS SEMICONDUCTORS vs. ON SEMICONDUCTOR | SIVERS SEMICONDUCTORS vs. Nordic Semiconductor ASA |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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