Correlation Between SIVERS SEMICONDUCTORS and Nokia
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Nokia 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 Nokia 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 Nokia, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Nokia 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 Nokia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Nokia.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Nokia
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIVERS and Nokia is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Nokia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nokia 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 Nokia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nokia has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Nokia go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Nokia
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Nokia. In addition to that, SIVERS SEMICONDUCTORS is 5.7 times more volatile than Nokia. It trades about -0.16 of its total potential returns per unit of risk. Nokia is currently generating about -0.24 per unit of volatility. If you would invest 446.00 in Nokia on August 30, 2024 and sell it today you would lose (50.00) from holding Nokia or give up 11.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Nokia
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Nokia |
SIVERS SEMICONDUCTORS and Nokia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Nokia
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Nokia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Nokia 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 Nokia will offset losses from the drop in Nokia's long position.| SIVERS SEMICONDUCTORS vs. Mitsubishi Gas Chemical | SIVERS SEMICONDUCTORS vs. Sunny Optical Technology | SIVERS SEMICONDUCTORS vs. Align Technology | SIVERS SEMICONDUCTORS vs. Micron Technology |
| Nokia vs. Cisco Systems | Nokia vs. Superior Plus Corp | Nokia vs. SIVERS SEMICONDUCTORS AB | Nokia vs. Talanx AG |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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