Correlation Between SIVERS SEMICONDUCTORS and OptiNose

Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and OptiNose 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 SEMICONDUCTORS and OptiNose into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SIVERS SEMICONDUCTORS AB and OptiNose, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and OptiNose 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 SEMICONDUCTORS with a short position of OptiNose. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and OptiNose.

Diversification Opportunities for SIVERS SEMICONDUCTORS and OptiNose

0.52

Correlation Coefficient

SIVERS SEMICONDUCTORS  OptiNose

Very weak diversification

The 3 months correlation between SIVERS and OptiNose is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and OptiNose in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OptiNose and SIVERS SEMICONDUCTORS 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 SEMICONDUCTORS AB are associated (or correlated) with OptiNose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OptiNose has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and OptiNose go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and OptiNose

Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the OptiNose. But the stock apears to be less risky and, when comparing its historical volatility, SIVERS SEMICONDUCTORS AB is 8.85 times less risky than OptiNose. The stock trades about 0.0 of its potential returns per unit of risk. The OptiNose is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,656  in OptiNose on October 24, 2024 and sell it today you would lose (1,049) from holding OptiNose or give up 63.35% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

SIVERS SEMICONDUCTORS AB  vs.  OptiNose

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SIVERS SEMICONDUCTORS AB are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SIVERS SEMICONDUCTORS reported solid returns over the last few months and may actually be approaching a breakup point.

OptiNose

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in OptiNose are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, OptiNose reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIVERS SEMICONDUCTORS and OptiNose

The main advantage of trading using opposite SIVERS SEMICONDUCTORS and OptiNose positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, OptiNose 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 OptiNose will offset losses from the drop in OptiNose's long position.

The idea behind SIVERS SEMICONDUCTORS AB and OptiNose pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.