Correlation Between SIVERS SEMICONDUCTORS and CosmoSteel Holdings
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and CosmoSteel Holdings 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 CosmoSteel Holdings 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 CosmoSteel Holdings Limited, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and CosmoSteel Holdings 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 CosmoSteel Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and CosmoSteel Holdings.
Diversification Opportunities for SIVERS SEMICONDUCTORS and CosmoSteel Holdings
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SIVERS and CosmoSteel is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and CosmoSteel Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CosmoSteel 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 CosmoSteel Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CosmoSteel Holdings has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and CosmoSteel Holdings go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and CosmoSteel Holdings
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the CosmoSteel Holdings. In addition to that, SIVERS SEMICONDUCTORS is 5.34 times more volatile than CosmoSteel Holdings Limited. It trades about -0.19 of its total potential returns per unit of risk. CosmoSteel Holdings Limited is currently generating about -0.02 per unit of volatility. If you would invest 6.10 in CosmoSteel Holdings Limited on August 31, 2024 and sell it today you would lose (0.10) from holding CosmoSteel Holdings Limited or give up 1.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. CosmoSteel Holdings Limited
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| CosmoSteel Holdings |
SIVERS SEMICONDUCTORS and CosmoSteel Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and CosmoSteel Holdings
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and CosmoSteel Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, CosmoSteel Holdings 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 CosmoSteel Holdings will offset losses from the drop in CosmoSteel Holdings' long position.| SIVERS SEMICONDUCTORS vs. Strategic Investments AS | SIVERS SEMICONDUCTORS vs. ECHO INVESTMENT ZY | SIVERS SEMICONDUCTORS vs. Genco Shipping Trading | SIVERS SEMICONDUCTORS vs. AOYAMA TRADING |
| CosmoSteel Holdings vs. WATSCO INC B | CosmoSteel Holdings vs. Indutrade AB | CosmoSteel Holdings vs. Superior Plus Corp | CosmoSteel Holdings vs. NMI Holdings |
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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