Correlation Between SIVERS SEMICONDUCTORS and Gildan Activewear
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Gildan Activewear 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 Gildan Activewear 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 Gildan Activewear, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Gildan Activewear 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 Gildan Activewear. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Gildan Activewear.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Gildan Activewear
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIVERS and Gildan is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Gildan Activewear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gildan Activewear 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 Gildan Activewear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gildan Activewear has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Gildan Activewear go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Gildan Activewear
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Gildan Activewear. In addition to that, SIVERS SEMICONDUCTORS is 3.48 times more volatile than Gildan Activewear. It trades about -0.03 of its total potential returns per unit of risk. Gildan Activewear is currently generating about 0.11 per unit of volatility. If you would invest 2,644 in Gildan Activewear on September 12, 2024 and sell it today you would earn a total of 1,876 from holding Gildan Activewear or generate 70.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Gildan Activewear
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Gildan Activewear |
SIVERS SEMICONDUCTORS and Gildan Activewear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Gildan Activewear
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Gildan Activewear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Gildan Activewear 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 Gildan Activewear will offset losses from the drop in Gildan Activewear's long position.| SIVERS SEMICONDUCTORS vs. Taiwan Semiconductor Manufacturing | SIVERS SEMICONDUCTORS vs. Broadcom | SIVERS SEMICONDUCTORS vs. Superior Plus Corp | SIVERS SEMICONDUCTORS vs. Norsk Hydro ASA |
| Gildan Activewear vs. Superior Plus Corp | Gildan Activewear vs. SIVERS SEMICONDUCTORS AB | Gildan Activewear vs. Norsk Hydro ASA | Gildan Activewear 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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