Correlation Between SIVERS SEMICONDUCTORS and NTG Nordic
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and NTG Nordic 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 NTG Nordic 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 NTG Nordic Transport, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and NTG Nordic 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 NTG Nordic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and NTG Nordic.
Diversification Opportunities for SIVERS SEMICONDUCTORS and NTG Nordic
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SIVERS and NTG is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and NTG Nordic Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTG Nordic Transport 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 NTG Nordic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTG Nordic Transport has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and NTG Nordic go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and NTG Nordic
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the NTG Nordic. In addition to that, SIVERS SEMICONDUCTORS is 1.85 times more volatile than NTG Nordic Transport. It trades about -0.04 of its total potential returns per unit of risk. NTG Nordic Transport is currently generating about 0.03 per unit of volatility. If you would invest 3,185 in NTG Nordic Transport on August 24, 2024 and sell it today you would earn a total of 700.00 from holding NTG Nordic Transport or generate 21.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. NTG Nordic Transport
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| NTG Nordic Transport |
SIVERS SEMICONDUCTORS and NTG Nordic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and NTG Nordic
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and NTG Nordic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, NTG Nordic 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 NTG Nordic will offset losses from the drop in NTG Nordic's long position.| SIVERS SEMICONDUCTORS vs. BII Railway Transportation | SIVERS SEMICONDUCTORS vs. Sporttotal AG | SIVERS SEMICONDUCTORS vs. CNVISION MEDIA | SIVERS SEMICONDUCTORS vs. Townsquare Media |
| NTG Nordic vs. SINGAPORE POST | NTG Nordic vs. Superior Plus Corp | NTG Nordic vs. NMI Holdings | NTG Nordic vs. Origin Agritech |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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