Correlation Between Sivers IMA and Smart Eye
Can any of the company-specific risk be diversified away by investing in both Sivers IMA and Smart Eye 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 Smart Eye 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 Smart Eye AB, you can compare the effects of market volatilities on Sivers IMA and Smart Eye 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 Smart Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sivers IMA and Smart Eye.
Diversification Opportunities for Sivers IMA and Smart Eye
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sivers and Smart is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and Smart Eye AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Eye 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 Smart Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Eye AB has no effect on the direction of Sivers IMA i.e., Sivers IMA and Smart Eye go up and down completely randomly.
Pair Corralation between Sivers IMA and Smart Eye
Assuming the 90 days trading horizon Sivers IMA Holding is expected to under-perform the Smart Eye. In addition to that, Sivers IMA is 3.32 times more volatile than Smart Eye AB. It trades about -0.17 of its total potential returns per unit of risk. Smart Eye AB is currently generating about -0.1 per unit of volatility. If you would invest 6,670 in Smart Eye AB on August 27, 2024 and sell it today you would lose (530.00) from holding Smart Eye AB or give up 7.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sivers IMA Holding vs. Smart Eye AB
Performance |
| Timeline |
| Sivers IMA Holding |
| Smart Eye AB |
Sivers IMA and Smart Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sivers IMA and Smart Eye
The main advantage of trading using opposite Sivers IMA and Smart Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sivers IMA position performs unexpectedly, Smart Eye 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 Smart Eye will offset losses from the drop in Smart Eye'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 |
| Smart Eye vs. Lifco AB | Smart Eye vs. Lagercrantz Group AB | Smart Eye vs. Addtech AB | Smart Eye vs. Instalco Intressenter 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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