Correlation Between SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding AG, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding.
Diversification Opportunities for SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SIVERS and HAMMONIA is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and HAMMONIA Schiffsholding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HAMMONIA Schiffsholding has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the HAMMONIA Schiffsholding. In addition to that, SIVERS SEMICONDUCTORS is 3.07 times more volatile than HAMMONIA Schiffsholding AG. It trades about -0.03 of its total potential returns per unit of risk. HAMMONIA Schiffsholding AG is currently generating about 0.01 per unit of volatility. If you would invest 28,800 in HAMMONIA Schiffsholding AG on September 1, 2024 and sell it today you would lose (200.00) from holding HAMMONIA Schiffsholding AG or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. HAMMONIA Schiffsholding AG
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| HAMMONIA Schiffsholding |
SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and HAMMONIA Schiffsholding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, HAMMONIA Schiffsholding 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 HAMMONIA Schiffsholding will offset losses from the drop in HAMMONIA Schiffsholding's long position.The idea behind SIVERS SEMICONDUCTORS AB and HAMMONIA Schiffsholding AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| HAMMONIA Schiffsholding vs. Qingdao Port International | HAMMONIA Schiffsholding vs. Superior Plus Corp | HAMMONIA Schiffsholding vs. NMI Holdings | HAMMONIA Schiffsholding vs. Origin Agritech |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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