Correlation Between SIVERS SEMICONDUCTORS and Man Wah
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Man Wah 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 Man Wah 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 Man Wah Holdings, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Man Wah 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 Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Man Wah.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Man Wah
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SIVERS and Man is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Man Wah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Wah Holdings 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 Man Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Wah Holdings has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Man Wah go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Man Wah
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 2.95 times more return on investment than Man Wah. However, SIVERS SEMICONDUCTORS is 2.95 times more volatile than Man Wah Holdings. It trades about 0.21 of its potential returns per unit of risk. Man Wah Holdings is currently generating about -0.03 per unit of risk. If you would invest 25.00 in SIVERS SEMICONDUCTORS AB on October 15, 2024 and sell it today you would earn a total of 6.00 from holding SIVERS SEMICONDUCTORS AB or generate 24.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Man Wah Holdings
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Man Wah Holdings |
SIVERS SEMICONDUCTORS and Man Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Man Wah
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.| SIVERS SEMICONDUCTORS vs. MCEWEN MINING INC | SIVERS SEMICONDUCTORS vs. ARDAGH METAL PACDL 0001 | SIVERS SEMICONDUCTORS vs. Marie Brizard Wine | SIVERS SEMICONDUCTORS vs. AAC TECHNOLOGHLDGADR |
| Man Wah vs. SK TELECOM TDADR | Man Wah vs. Zoom Video Communications | Man Wah vs. INTERSHOP Communications Aktiengesellschaft | Man Wah vs. COMBA TELECOM SYST |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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