Correlation Between Sinch AB and Sivers IMA
Can any of the company-specific risk be diversified away by investing in both Sinch AB 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 Sinch AB and Sivers IMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinch AB and Sivers IMA Holding, you can compare the effects of market volatilities on Sinch AB 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 Sinch AB with a short position of Sivers IMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinch AB and Sivers IMA.
Diversification Opportunities for Sinch AB and Sivers IMA
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sinch and Sivers is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Sinch 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 Sinch AB 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 Sinch 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 Sinch AB i.e., Sinch AB and Sivers IMA go up and down completely randomly.
Pair Corralation between Sinch AB and Sivers IMA
Assuming the 90 days trading horizon Sinch AB is expected to under-perform the Sivers IMA. But the stock apears to be less risky and, when comparing its historical volatility, Sinch AB is 2.42 times less risky than Sivers IMA. The stock trades about -0.11 of its potential returns per unit of risk. The Sivers IMA Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 396.00 in Sivers IMA Holding on October 26, 2024 and sell it today you would lose (68.00) from holding Sivers IMA Holding or give up 17.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinch AB vs. Sivers IMA Holding
Performance |
| Timeline |
| Sinch AB |
| Sivers IMA Holding |
Sinch AB and Sivers IMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinch AB and Sivers IMA
The main advantage of trading using opposite Sinch AB and Sivers IMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinch AB 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.| Sinch AB vs. Embracer Group AB | Sinch AB vs. Samhllsbyggnadsbolaget i Norden | Sinch AB vs. Evolution AB | Sinch AB vs. Stillfront Group AB |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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