Correlation Between SIVERS SEMICONDUCTORS and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and THAI BEVERAGE 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 THAI BEVERAGE 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 THAI BEVERAGE, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and THAI BEVERAGE 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 THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and THAI BEVERAGE.
Diversification Opportunities for SIVERS SEMICONDUCTORS and THAI BEVERAGE
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIVERS and THAI is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE 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 THAI BEVERAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI BEVERAGE has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and THAI BEVERAGE
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the THAI BEVERAGE. In addition to that, SIVERS SEMICONDUCTORS is 4.27 times more volatile than THAI BEVERAGE. It trades about -0.16 of its total potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.14 per unit of volatility. If you would invest 35.00 in THAI BEVERAGE on August 29, 2024 and sell it today you would earn a total of 3.00 from holding THAI BEVERAGE or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. THAI BEVERAGE
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| THAI BEVERAGE |
SIVERS SEMICONDUCTORS and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and THAI BEVERAGE
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, THAI BEVERAGE 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 THAI BEVERAGE will offset losses from the drop in THAI BEVERAGE's long position.| SIVERS SEMICONDUCTORS vs. ELMOS SEMICONDUCTOR | SIVERS SEMICONDUCTORS vs. NXP Semiconductors NV | SIVERS SEMICONDUCTORS vs. ON SEMICONDUCTOR | SIVERS SEMICONDUCTORS vs. Nordic Semiconductor ASA |
| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Superior Plus Corp | THAI BEVERAGE 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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