Correlation Between Semiconductor Manufacturing and SYSTEMAIR

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Can any of the company-specific risk be diversified away by investing in both Semiconductor Manufacturing and SYSTEMAIR 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 Semiconductor Manufacturing and SYSTEMAIR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Semiconductor Manufacturing International and SYSTEMAIR AB, you can compare the effects of market volatilities on Semiconductor Manufacturing and SYSTEMAIR 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 Semiconductor Manufacturing with a short position of SYSTEMAIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semiconductor Manufacturing and SYSTEMAIR.

Diversification Opportunities for Semiconductor Manufacturing and SYSTEMAIR

SemiconductorSYSTEMAIRDiversified AwaySemiconductorSYSTEMAIRDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Semiconductor and SYSTEMAIR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Semiconductor Manufacturing In and SYSTEMAIR AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYSTEMAIR AB and Semiconductor Manufacturing 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 Semiconductor Manufacturing International are associated (or correlated) with SYSTEMAIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYSTEMAIR AB has no effect on the direction of Semiconductor Manufacturing i.e., Semiconductor Manufacturing and SYSTEMAIR go up and down completely randomly.

Pair Corralation between Semiconductor Manufacturing and SYSTEMAIR

If you would invest  764.00  in SYSTEMAIR AB on November 18, 2024 and sell it today you would earn a total of  8.00  from holding SYSTEMAIR AB or generate 1.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Semiconductor Manufacturing In  vs.  SYSTEMAIR AB

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 5101520
JavaScript chart by amCharts 3.21.15MKN2 52SA
       Timeline  
Semiconductor Manufacturing 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Semiconductor Manufacturing International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Semiconductor Manufacturing is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3.43.45
SYSTEMAIR AB 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in SYSTEMAIR AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, SYSTEMAIR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7.588.5

Semiconductor Manufacturing and SYSTEMAIR Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.040.050.06
JavaScript chart by amCharts 3.21.15MKN2 52SA
       Returns  

Pair Trading with Semiconductor Manufacturing and SYSTEMAIR

The main advantage of trading using opposite Semiconductor Manufacturing and SYSTEMAIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semiconductor Manufacturing position performs unexpectedly, SYSTEMAIR 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 SYSTEMAIR will offset losses from the drop in SYSTEMAIR's long position.
The idea behind Semiconductor Manufacturing International and SYSTEMAIR AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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