Correlation Between XMReality and Sivers IMA
Can any of the company-specific risk be diversified away by investing in both XMReality 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 XMReality and Sivers IMA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XMReality AB and Sivers IMA Holding, you can compare the effects of market volatilities on XMReality 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 XMReality with a short position of Sivers IMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of XMReality and Sivers IMA.
Diversification Opportunities for XMReality and Sivers IMA
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between XMReality and Sivers is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding XMReality 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 XMReality 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 XMReality 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 XMReality i.e., XMReality and Sivers IMA go up and down completely randomly.
Pair Corralation between XMReality and Sivers IMA
Assuming the 90 days trading horizon XMReality AB is expected to under-perform the Sivers IMA. In addition to that, XMReality is 1.82 times more volatile than Sivers IMA Holding. It trades about -0.06 of its total potential returns per unit of risk. Sivers IMA Holding is currently generating about -0.04 per unit of volatility. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
XMReality AB vs. Sivers IMA Holding
Performance |
| Timeline |
| XMReality AB |
| Sivers IMA Holding |
XMReality and Sivers IMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XMReality and Sivers IMA
The main advantage of trading using opposite XMReality and Sivers IMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XMReality 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.| XMReality vs. Tangiamo Touch Technology | XMReality vs. Zaplox AB | XMReality vs. Alligator Bioscience AB | XMReality vs. Garo 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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