Correlation Between SIVERS SEMICONDUCTORS and AGREE RLTY

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

Diversification Opportunities for SIVERS SEMICONDUCTORS and AGREE RLTY

-0.9

Correlation Coefficient

SIVERS SEMICONDUCTORS  AGREE RLTY

Pay attention - limited upside

The 3 months correlation between SIVERS and AGREE is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and AGREE RLTY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGREE RLTY P 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 AGREE RLTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGREE RLTY P has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and AGREE RLTY go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and AGREE RLTY

Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the AGREE RLTY. In addition to that, SIVERS SEMICONDUCTORS is 6.94 times more volatile than AGREE RLTY P. It trades about -0.15 of its total potential returns per unit of risk. AGREE RLTY P is currently generating about 0.22 per unit of volatility. If you would invest  6,481  in AGREE RLTY P on August 31, 2024 and sell it today you would earn a total of  1,019  from holding AGREE RLTY P or generate 15.72% return on investment over 90 days.

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

SIVERS SEMICONDUCTORS AB  vs.  AGREE RLTY P

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

0 of 100

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 fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AGREE RLTY P

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AGREE RLTY P are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AGREE RLTY reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIVERS SEMICONDUCTORS and AGREE RLTY

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

The idea behind SIVERS SEMICONDUCTORS AB and AGREE RLTY P 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.