Correlation Between Metro AG and SIVERS SEMICONDUCTORS
Can any of the company-specific risk be diversified away by investing in both Metro AG 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 Metro AG and SIVERS SEMICONDUCTORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Metro AG and SIVERS SEMICONDUCTORS AB, you can compare the effects of market volatilities on Metro AG 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 Metro AG with a short position of SIVERS SEMICONDUCTORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metro AG and SIVERS SEMICONDUCTORS.
Diversification Opportunities for Metro AG and SIVERS SEMICONDUCTORS
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Metro and SIVERS is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Metro AG and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS and Metro AG 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 Metro AG 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 Metro AG i.e., Metro AG and SIVERS SEMICONDUCTORS go up and down completely randomly.
Pair Corralation between Metro AG and SIVERS SEMICONDUCTORS
Assuming the 90 days trading horizon Metro AG is expected to generate 0.6 times more return on investment than SIVERS SEMICONDUCTORS. However, Metro AG is 1.67 times less risky than SIVERS SEMICONDUCTORS. It trades about 0.0 of its potential returns per unit of risk. SIVERS SEMICONDUCTORS AB is currently generating about -0.01 per unit of risk. If you would invest 625.00 in Metro AG on September 19, 2024 and sell it today you would lose (129.00) from holding Metro AG or give up 20.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metro AG vs. SIVERS SEMICONDUCTORS AB
Performance |
| Timeline |
| Metro AG |
| SIVERS SEMICONDUCTORS |
Metro AG and SIVERS SEMICONDUCTORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metro AG and SIVERS SEMICONDUCTORS
The main advantage of trading using opposite Metro AG and SIVERS SEMICONDUCTORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metro AG 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.| Metro AG vs. TYSON FOODS A | Metro AG vs. JJ SNACK FOODS | Metro AG vs. National Beverage Corp | Metro AG vs. Entravision Communications |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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