Correlation Between AMAG AUSTRIA and SIVERS SEMICONDUCTORS
Can any of the company-specific risk be diversified away by investing in both AMAG AUSTRIA 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 AMAG AUSTRIA and SIVERS SEMICONDUCTORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMAG AUSTRIA M and SIVERS SEMICONDUCTORS AB, you can compare the effects of market volatilities on AMAG AUSTRIA 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 AMAG AUSTRIA with a short position of SIVERS SEMICONDUCTORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAG AUSTRIA and SIVERS SEMICONDUCTORS.
Diversification Opportunities for AMAG AUSTRIA and SIVERS SEMICONDUCTORS
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMAG and SIVERS is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding AMAG AUSTRIA M and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS and AMAG AUSTRIA 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 AMAG AUSTRIA M 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 AMAG AUSTRIA i.e., AMAG AUSTRIA and SIVERS SEMICONDUCTORS go up and down completely randomly.
Pair Corralation between AMAG AUSTRIA and SIVERS SEMICONDUCTORS
Assuming the 90 days trading horizon AMAG AUSTRIA M is expected to generate 0.11 times more return on investment than SIVERS SEMICONDUCTORS. However, AMAG AUSTRIA M is 9.06 times less risky than SIVERS SEMICONDUCTORS. It trades about -0.15 of its potential returns per unit of risk. SIVERS SEMICONDUCTORS AB is currently generating about -0.04 per unit of risk. If you would invest 2,670 in AMAG AUSTRIA M on September 2, 2024 and sell it today you would lose (360.00) from holding AMAG AUSTRIA M or give up 13.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMAG AUSTRIA M vs. SIVERS SEMICONDUCTORS AB
Performance |
| Timeline |
| AMAG AUSTRIA M |
| SIVERS SEMICONDUCTORS |
AMAG AUSTRIA and SIVERS SEMICONDUCTORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAG AUSTRIA and SIVERS SEMICONDUCTORS
The main advantage of trading using opposite AMAG AUSTRIA and SIVERS SEMICONDUCTORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAG AUSTRIA 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.| AMAG AUSTRIA vs. JSC Halyk bank | AMAG AUSTRIA vs. DELTA AIR LINES | AMAG AUSTRIA vs. Webster Financial | AMAG AUSTRIA vs. CDN IMPERIAL BANK |
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 CEOs Directory module to screen CEOs from public companies around the world.
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