Correlation Between Sivers IMA and SaltX Technology
Can any of the company-specific risk be diversified away by investing in both Sivers IMA and SaltX Technology 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 SaltX Technology 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 SaltX Technology Holding, you can compare the effects of market volatilities on Sivers IMA and SaltX Technology 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 SaltX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sivers IMA and SaltX Technology.
Diversification Opportunities for Sivers IMA and SaltX Technology
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sivers and SaltX is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and SaltX Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaltX Technology Holding 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 SaltX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaltX Technology Holding has no effect on the direction of Sivers IMA i.e., Sivers IMA and SaltX Technology go up and down completely randomly.
Pair Corralation between Sivers IMA and SaltX Technology
Assuming the 90 days trading horizon Sivers IMA Holding is expected to generate 4.66 times more return on investment than SaltX Technology. However, Sivers IMA is 4.66 times more volatile than SaltX Technology Holding. It trades about 0.07 of its potential returns per unit of risk. SaltX Technology Holding is currently generating about -0.06 per unit of risk. If you would invest 314.00 in Sivers IMA Holding on November 4, 2024 and sell it today you would earn a total of 15.00 from holding Sivers IMA Holding or generate 4.78% 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. SaltX Technology Holding
Performance |
| Timeline |
| Sivers IMA Holding |
| SaltX Technology Holding |
Sivers IMA and SaltX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sivers IMA and SaltX Technology
The main advantage of trading using opposite Sivers IMA and SaltX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sivers IMA position performs unexpectedly, SaltX Technology 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 SaltX Technology will offset losses from the drop in SaltX Technology'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 |
| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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