Correlation Between SIVERS SEMICONDUCTORS and Chongqing Machinery
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Chongqing Machinery 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 Chongqing Machinery 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 Chongqing Machinery Electric, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Chongqing Machinery 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 Chongqing Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Chongqing Machinery.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Chongqing Machinery
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and Chongqing is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Chongqing Machinery Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Machinery 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 Chongqing Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Machinery has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Chongqing Machinery go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Chongqing Machinery
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Chongqing Machinery. But the stock apears to be less risky and, when comparing its historical volatility, SIVERS SEMICONDUCTORS AB is 1.21 times less risky than Chongqing Machinery. The stock trades about -0.04 of its potential returns per unit of risk. The Chongqing Machinery Electric is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.93 in Chongqing Machinery Electric on August 27, 2024 and sell it today you would earn a total of 5.52 from holding Chongqing Machinery Electric or generate 286.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Chongqing Machinery Electric
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Chongqing Machinery |
SIVERS SEMICONDUCTORS and Chongqing Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Chongqing Machinery
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Chongqing Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Chongqing Machinery 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 Chongqing Machinery will offset losses from the drop in Chongqing Machinery's long position.| SIVERS SEMICONDUCTORS vs. Monster Beverage Corp | SIVERS SEMICONDUCTORS vs. QBE Insurance Group | SIVERS SEMICONDUCTORS vs. PT Bank Maybank | SIVERS SEMICONDUCTORS vs. The Hanover Insurance |
| Chongqing Machinery vs. Superior Plus Corp | Chongqing Machinery vs. NMI Holdings | Chongqing Machinery vs. Origin Agritech | Chongqing Machinery vs. SIVERS SEMICONDUCTORS AB |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |