Correlation Between SIVERS SEMICONDUCTORS and MONGOLIAN MINING

Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and MONGOLIAN MINING 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 MONGOLIAN MINING 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 MONGOLIAN MINING CRPREGS, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and MONGOLIAN MINING 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 MONGOLIAN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and MONGOLIAN MINING.

Diversification Opportunities for SIVERS SEMICONDUCTORS and MONGOLIAN MINING

0.0

Correlation Coefficient

SIVERS SEMICONDUCTORS  MONGOLIAN MINING

Pay attention - limited upside

The 3 months correlation between SIVERS and MONGOLIAN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and MONGOLIAN MINING CRPREGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MONGOLIAN MINING CRPREGS 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 MONGOLIAN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MONGOLIAN MINING CRPREGS has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and MONGOLIAN MINING go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and MONGOLIAN MINING

If you would invest  17.00  in SIVERS SEMICONDUCTORS AB on October 9, 2024 and sell it today you would earn a total of  8.00  from holding SIVERS SEMICONDUCTORS AB or generate 47.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SIVERS SEMICONDUCTORS AB  vs.  MONGOLIAN MINING CRPREGS

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

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Very Weak

Over the last 90 days SIVERS SEMICONDUCTORS AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SIVERS SEMICONDUCTORS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

MONGOLIAN MINING CRPREGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MONGOLIAN MINING CRPREGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MONGOLIAN MINING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SIVERS SEMICONDUCTORS and MONGOLIAN MINING

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

The idea behind SIVERS SEMICONDUCTORS AB and MONGOLIAN MINING CRPREGS 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.