Correlation Between SIVERS SEMICONDUCTORS and NEL ASA
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and NEL ASA 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 NEL ASA 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 NEL ASA ADR30, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and NEL ASA 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 NEL ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and NEL ASA.
Diversification Opportunities for SIVERS SEMICONDUCTORS and NEL ASA
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIVERS and NEL is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and NEL ASA ADR30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEL ASA ADR30 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 NEL ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEL ASA ADR30 has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and NEL ASA go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and NEL ASA
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the NEL ASA. In addition to that, SIVERS SEMICONDUCTORS is 1.53 times more volatile than NEL ASA ADR30. It trades about -0.16 of its total potential returns per unit of risk. NEL ASA ADR30 is currently generating about -0.17 per unit of volatility. If you would invest 1,080 in NEL ASA ADR30 on August 30, 2024 and sell it today you would lose (335.00) from holding NEL ASA ADR30 or give up 31.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. NEL ASA ADR30
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| NEL ASA ADR30 |
SIVERS SEMICONDUCTORS and NEL ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and NEL ASA
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and NEL ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, NEL ASA 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 NEL ASA will offset losses from the drop in NEL ASA's long position.| SIVERS SEMICONDUCTORS vs. Mitsubishi Gas Chemical | SIVERS SEMICONDUCTORS vs. Sunny Optical Technology | SIVERS SEMICONDUCTORS vs. Align Technology | SIVERS SEMICONDUCTORS vs. Micron Technology |
| NEL ASA vs. Superior Plus Corp | NEL ASA vs. NMI Holdings | NEL ASA vs. SIVERS SEMICONDUCTORS AB | NEL ASA vs. Talanx AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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