Correlation Between SIVERS SEMICONDUCTORS and Amundi MSCI

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

Diversification Opportunities for SIVERS SEMICONDUCTORS and Amundi MSCI

0.53

Correlation Coefficient

SIVERS SEMICONDUCTORS  Amundi MSCI

Very weak diversification

The 3 months correlation between SIVERS and Amundi is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Amundi MSCI Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi MSCI Europe 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 Amundi MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi MSCI Europe has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Amundi MSCI go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and Amundi MSCI

Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 12.73 times more return on investment than Amundi MSCI. However, SIVERS SEMICONDUCTORS is 12.73 times more volatile than Amundi MSCI Europe. It trades about 0.01 of its potential returns per unit of risk. Amundi MSCI Europe is currently generating about -0.08 per unit of risk. If you would invest  33.00  in SIVERS SEMICONDUCTORS AB on October 6, 2024 and sell it today you would lose (7.00) from holding SIVERS SEMICONDUCTORS AB or give up 21.21% 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.  Amundi MSCI Europe

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 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.

Amundi MSCI Europe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amundi MSCI Europe has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Amundi MSCI is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SIVERS SEMICONDUCTORS and Amundi MSCI

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

The idea behind SIVERS SEMICONDUCTORS AB and Amundi MSCI Europe 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.