Correlation Between SIVERS SEMICONDUCTORS and Kuehne Nagel
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Kuehne Nagel 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 Kuehne Nagel 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 Kuehne Nagel International, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Kuehne Nagel 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 Kuehne Nagel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Kuehne Nagel.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Kuehne Nagel
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SIVERS and Kuehne is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Kuehne Nagel International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuehne Nagel Interna 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 Kuehne Nagel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuehne Nagel Interna has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Kuehne Nagel go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Kuehne Nagel
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Kuehne Nagel. In addition to that, SIVERS SEMICONDUCTORS is 8.81 times more volatile than Kuehne Nagel International. It trades about -0.07 of its total potential returns per unit of risk. Kuehne Nagel International is currently generating about -0.08 per unit of volatility. If you would invest 4,520 in Kuehne Nagel International on September 5, 2024 and sell it today you would lose (120.00) from holding Kuehne Nagel International or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Kuehne Nagel International
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Kuehne Nagel Interna |
SIVERS SEMICONDUCTORS and Kuehne Nagel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Kuehne Nagel
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Kuehne Nagel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Kuehne Nagel 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 Kuehne Nagel will offset losses from the drop in Kuehne Nagel's long position.| SIVERS SEMICONDUCTORS vs. NVIDIA | SIVERS SEMICONDUCTORS vs. Taiwan Semiconductor Manufacturing | SIVERS SEMICONDUCTORS vs. Advanced Micro Devices |
| Kuehne Nagel vs. Ultra Clean Holdings | Kuehne Nagel vs. ULTRA CLEAN HLDGS | Kuehne Nagel vs. Sunny Optical Technology | Kuehne Nagel vs. Casio Computer CoLtd |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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