Correlation Between Glaston Oyj and SIVERS SEMICONDUCTORS
Can any of the company-specific risk be diversified away by investing in both Glaston Oyj 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 Glaston Oyj and SIVERS SEMICONDUCTORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glaston Oyj Abp and SIVERS SEMICONDUCTORS AB, you can compare the effects of market volatilities on Glaston Oyj 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 Glaston Oyj with a short position of SIVERS SEMICONDUCTORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glaston Oyj and SIVERS SEMICONDUCTORS.
Diversification Opportunities for Glaston Oyj and SIVERS SEMICONDUCTORS
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Glaston and SIVERS is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Glaston Oyj Abp and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS and Glaston Oyj 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 Glaston Oyj Abp 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 Glaston Oyj i.e., Glaston Oyj and SIVERS SEMICONDUCTORS go up and down completely randomly.
Pair Corralation between Glaston Oyj and SIVERS SEMICONDUCTORS
Assuming the 90 days trading horizon Glaston Oyj Abp is expected to generate 0.46 times more return on investment than SIVERS SEMICONDUCTORS. However, Glaston Oyj Abp is 2.15 times less risky than SIVERS SEMICONDUCTORS. It trades about -0.01 of its potential returns per unit of risk. SIVERS SEMICONDUCTORS AB is currently generating about -0.02 per unit of risk. If you would invest 84.00 in Glaston Oyj Abp on August 31, 2024 and sell it today you would lose (15.00) from holding Glaston Oyj Abp or give up 17.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glaston Oyj Abp vs. SIVERS SEMICONDUCTORS AB
Performance |
| Timeline |
| Glaston Oyj Abp |
| SIVERS SEMICONDUCTORS |
Glaston Oyj and SIVERS SEMICONDUCTORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glaston Oyj and SIVERS SEMICONDUCTORS
The main advantage of trading using opposite Glaston Oyj and SIVERS SEMICONDUCTORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glaston Oyj 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.| Glaston Oyj vs. BANKINTER ADR 2007 | Glaston Oyj vs. REINET INVESTMENTS SCA | Glaston Oyj vs. Webster Financial | Glaston Oyj vs. MGIC INVESTMENT |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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