Correlation Between SIVERS SEMICONDUCTORS and KION Group
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and KION Group 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 KION Group 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 KION Group AG, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and KION Group 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 KION Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and KION Group.
Diversification Opportunities for SIVERS SEMICONDUCTORS and KION Group
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIVERS and KION is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and KION Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION Group AG 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 KION Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION Group AG has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and KION Group go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and KION Group
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the KION Group. In addition to that, SIVERS SEMICONDUCTORS is 3.66 times more volatile than KION Group AG. It trades about -0.27 of its total potential returns per unit of risk. KION Group AG is currently generating about -0.09 per unit of volatility. If you would invest 3,515 in KION Group AG on August 25, 2024 and sell it today you would lose (217.00) from holding KION Group AG or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. KION Group AG
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| KION Group AG |
SIVERS SEMICONDUCTORS and KION Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and KION Group
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and KION Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, KION Group 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 KION Group will offset losses from the drop in KION Group's long position.| SIVERS SEMICONDUCTORS vs. BII Railway Transportation | SIVERS SEMICONDUCTORS vs. Sporttotal AG | SIVERS SEMICONDUCTORS vs. CNVISION MEDIA | SIVERS SEMICONDUCTORS vs. Townsquare Media |
| KION Group vs. Cogent Communications Holdings | KION Group vs. Diamyd Medical AB | KION Group vs. Japan Medical Dynamic | KION Group vs. Ribbon Communications |
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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