Correlation Between SIVERS SEMICONDUCTORS and SUPER GROUP
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and SUPER GROUP 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 SUPER GROUP 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 SUPER GROUP LTD, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and SUPER GROUP 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 SUPER GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and SUPER GROUP.
Diversification Opportunities for SIVERS SEMICONDUCTORS and SUPER GROUP
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and SUPER is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and SUPER GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUPER GROUP LTD 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 SUPER GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUPER GROUP LTD has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and SUPER GROUP go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and SUPER GROUP
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the SUPER GROUP. But the stock apears to be less risky and, when comparing its historical volatility, SIVERS SEMICONDUCTORS AB is 1.32 times less risky than SUPER GROUP. The stock trades about -0.02 of its potential returns per unit of risk. The SUPER GROUP LTD is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 41.00 in SUPER GROUP LTD on August 31, 2024 and sell it today you would earn a total of 101.00 from holding SUPER GROUP LTD or generate 246.34% 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. SUPER GROUP LTD
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| SUPER GROUP LTD |
SIVERS SEMICONDUCTORS and SUPER GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and SUPER GROUP
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and SUPER GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, SUPER GROUP 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 SUPER GROUP will offset losses from the drop in SUPER GROUP's long position.| SIVERS SEMICONDUCTORS vs. Strategic Investments AS | SIVERS SEMICONDUCTORS vs. ECHO INVESTMENT ZY | SIVERS SEMICONDUCTORS vs. Genco Shipping Trading | SIVERS SEMICONDUCTORS vs. AOYAMA TRADING |
| SUPER GROUP vs. Superior Plus Corp | SUPER GROUP vs. NMI Holdings | SUPER GROUP vs. Origin Agritech | SUPER GROUP vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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