Correlation Between Postal Savings and SIVERS SEMICONDUCTORS
Can any of the company-specific risk be diversified away by investing in both Postal Savings and SIVERS SEMICONDUCTORS 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 Postal Savings and SIVERS SEMICONDUCTORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Postal Savings Bank and SIVERS SEMICONDUCTORS AB, you can compare the effects of market volatilities on Postal Savings and SIVERS SEMICONDUCTORS 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 Postal Savings with a short position of SIVERS SEMICONDUCTORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Postal Savings and SIVERS SEMICONDUCTORS.
Diversification Opportunities for Postal Savings and SIVERS SEMICONDUCTORS
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Postal and SIVERS is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Postal Savings Bank and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS and Postal Savings 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 Postal Savings Bank are associated (or correlated) with SIVERS SEMICONDUCTORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIVERS SEMICONDUCTORS has no effect on the direction of Postal Savings i.e., Postal Savings and SIVERS SEMICONDUCTORS go up and down completely randomly.
Pair Corralation between Postal Savings and SIVERS SEMICONDUCTORS
Assuming the 90 days horizon Postal Savings Bank is expected to generate 0.34 times more return on investment than SIVERS SEMICONDUCTORS. However, Postal Savings Bank is 2.98 times less risky than SIVERS SEMICONDUCTORS. It trades about 0.06 of its potential returns per unit of risk. SIVERS SEMICONDUCTORS AB is currently generating about -0.19 per unit of risk. If you would invest 50.00 in Postal Savings Bank on August 28, 2024 and sell it today you would earn a total of 4.00 from holding Postal Savings Bank or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Postal Savings Bank vs. SIVERS SEMICONDUCTORS AB
Performance |
| Timeline |
| Postal Savings Bank |
| SIVERS SEMICONDUCTORS |
Postal Savings and SIVERS SEMICONDUCTORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Postal Savings and SIVERS SEMICONDUCTORS
The main advantage of trading using opposite Postal Savings and SIVERS SEMICONDUCTORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Postal Savings position performs unexpectedly, SIVERS SEMICONDUCTORS 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 SIVERS SEMICONDUCTORS will offset losses from the drop in SIVERS SEMICONDUCTORS's long position.| Postal Savings vs. Deutsche Bank Aktiengesellschaft | Postal Savings vs. Superior Plus Corp | Postal Savings vs. NMI Holdings | Postal Savings vs. Origin Agritech |
| SIVERS SEMICONDUCTORS vs. Austevoll Seafood ASA | SIVERS SEMICONDUCTORS vs. AUSNUTRIA DAIRY | SIVERS SEMICONDUCTORS vs. SENECA FOODS A | SIVERS SEMICONDUCTORS vs. Cal Maine Foods |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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