Correlation Between SIVERS SEMICONDUCTORS and CITIC
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and CITIC 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 CITIC 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 CITIC Limited, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and CITIC 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 CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and CITIC.
Diversification Opportunities for SIVERS SEMICONDUCTORS and CITIC
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SIVERS and CITIC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and CITIC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Limited 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 CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Limited has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and CITIC go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and CITIC
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the CITIC. In addition to that, SIVERS SEMICONDUCTORS is 5.61 times more volatile than CITIC Limited. It trades about -0.22 of its total potential returns per unit of risk. CITIC Limited is currently generating about -0.09 per unit of volatility. If you would invest 109.00 in CITIC Limited on August 29, 2024 and sell it today you would lose (5.00) from holding CITIC Limited or give up 4.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. CITIC Limited
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| CITIC Limited |
SIVERS SEMICONDUCTORS and CITIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and CITIC
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, CITIC 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 CITIC will offset losses from the drop in CITIC's long position.| SIVERS SEMICONDUCTORS vs. Austevoll Seafood ASA | SIVERS SEMICONDUCTORS vs. AUSNUTRIA DAIRY | SIVERS SEMICONDUCTORS vs. SENECA FOODS A | SIVERS SEMICONDUCTORS vs. Cal Maine Foods |
| CITIC vs. Superior Plus Corp | CITIC vs. NMI Holdings | CITIC vs. Origin Agritech | CITIC 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |