Correlation Between SIVERS SEMICONDUCTORS and Equitable Holdings

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

Diversification Opportunities for SIVERS SEMICONDUCTORS and Equitable Holdings

-0.3

Correlation Coefficient

SIVERS SEMICONDUCTORS  Equitable Holdings

Very good diversification

The 3 months correlation between SIVERS and Equitable is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Equitable Holdings go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and Equitable Holdings

Assuming the 90 days horizon SIVERS SEMICONDUCTORS is expected to generate 1.98 times less return on investment than Equitable Holdings. In addition to that, SIVERS SEMICONDUCTORS is 3.9 times more volatile than Equitable Holdings. It trades about 0.02 of its total potential returns per unit of risk. Equitable Holdings is currently generating about 0.12 per unit of volatility. If you would invest  3,141  in Equitable Holdings on October 22, 2024 and sell it today you would earn a total of  1,799  from holding Equitable Holdings or generate 57.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.56%
Values	Daily Returns

SIVERS SEMICONDUCTORS AB  vs.  Equitable Holdings

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SIVERS SEMICONDUCTORS AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SIVERS SEMICONDUCTORS reported solid returns over the last few months and may actually be approaching a breakup point.

Equitable Holdings

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Equitable Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Equitable Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIVERS SEMICONDUCTORS and Equitable Holdings

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

The idea behind SIVERS SEMICONDUCTORS AB and Equitable Holdings 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 Commodity Directory module to find actively traded commodities issued by global exchanges.