Correlation Between GomSpace Group and Sivers IMA
Can any of the company-specific risk be diversified away by investing in both GomSpace Group and Sivers IMA 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 GomSpace Group and Sivers IMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GomSpace Group AB and Sivers IMA Holding, you can compare the effects of market volatilities on GomSpace Group and Sivers IMA 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 GomSpace Group with a short position of Sivers IMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GomSpace Group and Sivers IMA.
Diversification Opportunities for GomSpace Group and Sivers IMA
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GomSpace and Sivers is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding GomSpace Group AB and Sivers IMA Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sivers IMA Holding and GomSpace Group 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 GomSpace Group AB are associated (or correlated) with Sivers IMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sivers IMA Holding has no effect on the direction of GomSpace Group i.e., GomSpace Group and Sivers IMA go up and down completely randomly.
Pair Corralation between GomSpace Group and Sivers IMA
Assuming the 90 days trading horizon GomSpace Group AB is expected to under-perform the Sivers IMA. But the stock apears to be less risky and, when comparing its historical volatility, GomSpace Group AB is 5.22 times less risky than Sivers IMA. The stock trades about -0.26 of its potential returns per unit of risk. The Sivers IMA Holding is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Sivers IMA Holding on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Sivers IMA Holding or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GomSpace Group AB vs. Sivers IMA Holding
Performance |
| Timeline |
| GomSpace Group AB |
| Sivers IMA Holding |
GomSpace Group and Sivers IMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GomSpace Group and Sivers IMA
The main advantage of trading using opposite GomSpace Group and Sivers IMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GomSpace Group position performs unexpectedly, Sivers IMA 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 IMA will offset losses from the drop in Sivers IMA's long position.| GomSpace Group vs. Ambu AS | GomSpace Group vs. Bavarian Nordic | GomSpace Group vs. Fingerprint Cards AB | GomSpace Group vs. Zealand Pharma AS |
| Sivers IMA vs. Hexatronic Group AB | Sivers IMA vs. Sinch AB | Sivers IMA vs. Embracer Group AB | Sivers IMA vs. SolTech Energy Sweden |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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