Correlation Between SIVERS SEMICONDUCTORS and CLOVER HEALTH

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

Diversification Opportunities for SIVERS SEMICONDUCTORS and CLOVER HEALTH

0.74

Correlation Coefficient

SIVERS SEMICONDUCTORS  CLOVER HEALTH

Poor diversification

The 3 months correlation between SIVERS and CLOVER is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and CLOVER HEALTH INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLOVER HEALTH INV 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 CLOVER HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLOVER HEALTH INV has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and CLOVER HEALTH go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and CLOVER HEALTH

Assuming the 90 days horizon SIVERS SEMICONDUCTORS is expected to generate 28.12 times less return on investment than CLOVER HEALTH. In addition to that, SIVERS SEMICONDUCTORS is 1.02 times more volatile than CLOVER HEALTH INV. It trades about 0.0 of its total potential returns per unit of risk. CLOVER HEALTH INV is currently generating about 0.07 per unit of volatility. If you would invest  124.00  in CLOVER HEALTH INV on October 23, 2024 and sell it today you would earn a total of  260.00  from holding CLOVER HEALTH INV or generate 209.68% return on investment over 90 days.

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

SIVERS SEMICONDUCTORS AB  vs.  CLOVER HEALTH INV

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

2 of 100

Insignificant

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.

CLOVER HEALTH INV

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CLOVER HEALTH INV are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, CLOVER HEALTH reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIVERS SEMICONDUCTORS and CLOVER HEALTH

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

The idea behind SIVERS SEMICONDUCTORS AB and CLOVER HEALTH INV 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.