Correlation Between Sivers IMA and Gapwaves
Can any of the company-specific risk be diversified away by investing in both Sivers IMA and Gapwaves 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 Sivers IMA and Gapwaves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sivers IMA Holding and Gapwaves AB Series, you can compare the effects of market volatilities on Sivers IMA and Gapwaves 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 Sivers IMA with a short position of Gapwaves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sivers IMA and Gapwaves.
Diversification Opportunities for Sivers IMA and Gapwaves
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sivers and Gapwaves is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and Gapwaves AB Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gapwaves AB Series and Sivers IMA 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 Sivers IMA Holding are associated (or correlated) with Gapwaves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gapwaves AB Series has no effect on the direction of Sivers IMA i.e., Sivers IMA and Gapwaves go up and down completely randomly.
Pair Corralation between Sivers IMA and Gapwaves
Assuming the 90 days trading horizon Sivers IMA Holding is expected to generate 5.06 times more return on investment than Gapwaves. However, Sivers IMA is 5.06 times more volatile than Gapwaves AB Series. It trades about 0.1 of its potential returns per unit of risk. Gapwaves AB Series is currently generating about -0.01 per unit of risk. If you would invest 295.00 in Sivers IMA Holding on November 5, 2024 and sell it today you would earn a total of 34.00 from holding Sivers IMA Holding or generate 11.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sivers IMA Holding vs. Gapwaves AB Series
Performance |
| Timeline |
| Sivers IMA Holding |
| Gapwaves AB Series |
Sivers IMA and Gapwaves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sivers IMA and Gapwaves
The main advantage of trading using opposite Sivers IMA and Gapwaves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sivers IMA position performs unexpectedly, Gapwaves 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 Gapwaves will offset losses from the drop in Gapwaves' long position.| Sivers IMA vs. Hexatronic Group AB | Sivers IMA vs. Sinch AB | Sivers IMA vs. Embracer Group AB | Sivers IMA vs. SolTech Energy Sweden |
| Gapwaves vs. Sivers IMA Holding | Gapwaves vs. SaltX Technology Holding | Gapwaves vs. Acconeer AB | Gapwaves vs. Fingerprint Cards AB |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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