Correlation Between Sivers IMA and Kancera AB
Can any of the company-specific risk be diversified away by investing in both Sivers IMA and Kancera AB 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 Kancera AB 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 Kancera AB, you can compare the effects of market volatilities on Sivers IMA and Kancera AB 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 Kancera AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sivers IMA and Kancera AB.
Diversification Opportunities for Sivers IMA and Kancera AB
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sivers and Kancera is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and Kancera AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kancera AB 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 Kancera AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kancera AB has no effect on the direction of Sivers IMA i.e., Sivers IMA and Kancera AB go up and down completely randomly.
Pair Corralation between Sivers IMA and Kancera AB
Assuming the 90 days trading horizon Sivers IMA Holding is expected to generate 0.76 times more return on investment than Kancera AB. However, Sivers IMA Holding is 1.31 times less risky than Kancera AB. It trades about -0.04 of its potential returns per unit of risk. Kancera AB is currently generating about -0.03 per unit of risk. If you would invest 655.00 in Sivers IMA Holding on August 26, 2024 and sell it today you would lose (431.00) from holding Sivers IMA Holding or give up 65.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sivers IMA Holding vs. Kancera AB
Performance |
| Timeline |
| Sivers IMA Holding |
| Kancera AB |
Sivers IMA and Kancera AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sivers IMA and Kancera AB
The main advantage of trading using opposite Sivers IMA and Kancera AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sivers IMA position performs unexpectedly, Kancera AB 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 Kancera AB will offset losses from the drop in Kancera AB's 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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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