Correlation Between SIVERS SEMICONDUCTORS and Lowes Companies
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Lowes Companies 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 Lowes Companies 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 Lowes Companies, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Lowes Companies 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 Lowes Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Lowes Companies.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Lowes Companies
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and Lowes is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Lowes Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowes Companies 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 Lowes Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowes Companies has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Lowes Companies go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Lowes Companies
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Lowes Companies. In addition to that, SIVERS SEMICONDUCTORS is 3.54 times more volatile than Lowes Companies. It trades about -0.03 of its total potential returns per unit of risk. Lowes Companies is currently generating about 0.06 per unit of volatility. If you would invest 19,505 in Lowes Companies on September 12, 2024 and sell it today you would earn a total of 6,585 from holding Lowes Companies or generate 33.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Lowes Companies
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Lowes Companies |
SIVERS SEMICONDUCTORS and Lowes Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Lowes Companies
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Lowes Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Lowes Companies 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 Lowes Companies will offset losses from the drop in Lowes Companies' long position.| SIVERS SEMICONDUCTORS vs. Taiwan Semiconductor Manufacturing | SIVERS SEMICONDUCTORS vs. Broadcom | SIVERS SEMICONDUCTORS vs. Superior Plus Corp | SIVERS SEMICONDUCTORS vs. Norsk Hydro ASA |
| Lowes Companies vs. Sumitomo Rubber Industries | Lowes Companies vs. Vulcan Materials | Lowes Companies vs. LION ONE METALS | Lowes Companies vs. APPLIED MATERIALS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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