Correlation Between SIVERS SEMICONDUCTORS and MGIC INVESTMENT
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and MGIC INVESTMENT 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 MGIC INVESTMENT 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 MGIC INVESTMENT, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and MGIC INVESTMENT 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 MGIC INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and MGIC INVESTMENT.
Diversification Opportunities for SIVERS SEMICONDUCTORS and MGIC INVESTMENT
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIVERS and MGIC is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and MGIC INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGIC INVESTMENT 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 MGIC INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGIC INVESTMENT has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and MGIC INVESTMENT go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and MGIC INVESTMENT
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 3.41 times more return on investment than MGIC INVESTMENT. However, SIVERS SEMICONDUCTORS is 3.41 times more volatile than MGIC INVESTMENT. It trades about 0.16 of its potential returns per unit of risk. MGIC INVESTMENT is currently generating about -0.03 per unit of risk. If you would invest 26.00 in SIVERS SEMICONDUCTORS AB on November 27, 2024 and sell it today you would earn a total of 4.00 from holding SIVERS SEMICONDUCTORS AB or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. MGIC INVESTMENT
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| MGIC INVESTMENT |
SIVERS SEMICONDUCTORS and MGIC INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and MGIC INVESTMENT
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and MGIC INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, MGIC INVESTMENT 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 MGIC INVESTMENT will offset losses from the drop in MGIC INVESTMENT's long position.| SIVERS SEMICONDUCTORS vs. Cairo Communication SpA | SIVERS SEMICONDUCTORS vs. JSC Halyk bank | SIVERS SEMICONDUCTORS vs. Entravision Communications | SIVERS SEMICONDUCTORS vs. REVO INSURANCE SPA |
| MGIC INVESTMENT vs. MeVis Medical Solutions | MGIC INVESTMENT vs. Genertec Universal Medical | MGIC INVESTMENT vs. Peijia Medical Limited | MGIC INVESTMENT vs. MEDICAL FACILITIES NEW |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |