Correlation Between SIVERS SEMICONDUCTORS and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Cogent Communications 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 Cogent Communications 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 Cogent Communications Holdings, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Cogent Communications 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 Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Cogent Communications.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Cogent Communications
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and Cogent is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications 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 Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Cogent Communications go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Cogent Communications
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 5.35 times more return on investment than Cogent Communications. However, SIVERS SEMICONDUCTORS is 5.35 times more volatile than Cogent Communications Holdings. It trades about 0.01 of its potential returns per unit of risk. Cogent Communications Holdings is currently generating about -0.03 per unit of risk. If you would invest 17.00 in SIVERS SEMICONDUCTORS AB on September 13, 2024 and sell it today you would lose (1.00) from holding SIVERS SEMICONDUCTORS AB or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Cogent Communications Holdings
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Cogent Communications |
SIVERS SEMICONDUCTORS and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Cogent Communications
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| SIVERS SEMICONDUCTORS vs. REGAL ASIAN INVESTMENTS | SIVERS SEMICONDUCTORS vs. Monster Beverage Corp | SIVERS SEMICONDUCTORS vs. SLR Investment Corp | SIVERS SEMICONDUCTORS vs. PennyMac Mortgage Investment |
| Cogent Communications vs. Superior Plus Corp | Cogent Communications vs. SIVERS SEMICONDUCTORS AB | Cogent Communications vs. Norsk Hydro ASA | Cogent Communications vs. Reliance Steel Aluminum |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance |