Correlation Between SIVERS SEMICONDUCTORS and CLEANTECH LITH
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and CLEANTECH LITH 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 CLEANTECH LITH 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 CLEANTECH LITH LS, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and CLEANTECH LITH 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 CLEANTECH LITH. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and CLEANTECH LITH.
Diversification Opportunities for SIVERS SEMICONDUCTORS and CLEANTECH LITH
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SIVERS and CLEANTECH is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and CLEANTECH LITH LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEANTECH LITH LS 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 CLEANTECH LITH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEANTECH LITH LS has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and CLEANTECH LITH go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and CLEANTECH LITH
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the CLEANTECH LITH. But the stock apears to be less risky and, when comparing its historical volatility, SIVERS SEMICONDUCTORS AB is 2.0 times less risky than CLEANTECH LITH. The stock trades about -0.03 of its potential returns per unit of risk. The CLEANTECH LITH LS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 55.00 in CLEANTECH LITH LS on September 15, 2024 and sell it today you would lose (34.00) from holding CLEANTECH LITH LS or give up 61.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.64% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. CLEANTECH LITH LS
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| CLEANTECH LITH LS |
SIVERS SEMICONDUCTORS and CLEANTECH LITH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and CLEANTECH LITH
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and CLEANTECH LITH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, CLEANTECH LITH 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 CLEANTECH LITH will offset losses from the drop in CLEANTECH LITH's long position.| SIVERS SEMICONDUCTORS vs. Playtech plc | SIVERS SEMICONDUCTORS vs. COMBA TELECOM SYST | SIVERS SEMICONDUCTORS vs. Chunghwa Telecom Co | SIVERS SEMICONDUCTORS vs. NetSol Technologies |
| CLEANTECH LITH vs. American Lithium Corp | CLEANTECH LITH vs. ADRIATIC METALS LS 013355 | CLEANTECH LITH vs. Superior Plus Corp | CLEANTECH LITH 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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