Correlation Between SIVERS SEMICONDUCTORS and EBay
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and EBay 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 EBay 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 eBay Inc, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and EBay 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 EBay. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and EBay.
Diversification Opportunities for SIVERS SEMICONDUCTORS and EBay
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SIVERS and EBay is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and eBay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eBay Inc 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 EBay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eBay Inc has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and EBay go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and EBay
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the EBay. In addition to that, SIVERS SEMICONDUCTORS is 3.61 times more volatile than eBay Inc. It trades about -0.09 of its total potential returns per unit of risk. eBay Inc is currently generating about 0.13 per unit of volatility. If you would invest 4,751 in eBay Inc on August 28, 2024 and sell it today you would earn a total of 1,470 from holding eBay Inc or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. eBay Inc
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| eBay Inc |
SIVERS SEMICONDUCTORS and EBay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and EBay
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and EBay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, EBay 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 EBay will offset losses from the drop in EBay'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 |
| EBay vs. Superior Plus Corp | EBay vs. NMI Holdings | EBay vs. Origin Agritech | EBay 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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