Correlation Between SIVERS SEMICONDUCTORS and Commerzbank
Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Commerzbank 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 Commerzbank 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 Commerzbank AG, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Commerzbank 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 Commerzbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Commerzbank.
Diversification Opportunities for SIVERS SEMICONDUCTORS and Commerzbank
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SIVERS and Commerzbank is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Commerzbank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commerzbank AG 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 Commerzbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commerzbank AG has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Commerzbank go up and down completely randomly.
Pair Corralation between SIVERS SEMICONDUCTORS and Commerzbank
Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Commerzbank. In addition to that, SIVERS SEMICONDUCTORS is 6.47 times more volatile than Commerzbank AG. It trades about -0.15 of its total potential returns per unit of risk. Commerzbank AG is currently generating about -0.14 per unit of volatility. If you would invest 1,590 in Commerzbank AG on September 12, 2024 and sell it today you would lose (100.00) from holding Commerzbank AG or give up 6.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIVERS SEMICONDUCTORS AB vs. Commerzbank AG
Performance |
| Timeline |
| SIVERS SEMICONDUCTORS |
| Commerzbank AG |
SIVERS SEMICONDUCTORS and Commerzbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIVERS SEMICONDUCTORS and Commerzbank
The main advantage of trading using opposite SIVERS SEMICONDUCTORS and Commerzbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, Commerzbank 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 Commerzbank will offset losses from the drop in Commerzbank'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 |
| Commerzbank vs. Superior Plus Corp | Commerzbank vs. SIVERS SEMICONDUCTORS AB | Commerzbank vs. CHINA HUARONG ENERHD 50 | Commerzbank vs. NORDIC HALIBUT AS |
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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