Correlation Between SIVERS SEMICONDUCTORS and JPMF Global

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

Diversification Opportunities for SIVERS SEMICONDUCTORS and JPMF Global

-0.04

Correlation Coefficient

SIVERS SEMICONDUCTORS  JPMF Global

Good diversification

The 3 months correlation between SIVERS and JPMF is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and JPMF Global Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMF Global Natural 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 JPMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMF Global Natural has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and JPMF Global go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and JPMF Global

Assuming the 90 days horizon SIVERS SEMICONDUCTORS is expected to generate 6.01 times less return on investment than JPMF Global. In addition to that, SIVERS SEMICONDUCTORS is 5.14 times more volatile than JPMF Global Natural. It trades about 0.0 of its total potential returns per unit of risk. JPMF Global Natural is currently generating about 0.05 per unit of volatility. If you would invest  1,200  in JPMF Global Natural on October 22, 2024 and sell it today you would earn a total of  137.00  from holding JPMF Global Natural or generate 11.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	57.83%
Values	Daily Returns

SIVERS SEMICONDUCTORS AB  vs.  JPMF Global Natural

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

3 of 100

Weak

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.

JPMF Global Natural

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JPMF Global Natural has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, JPMF Global is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SIVERS SEMICONDUCTORS and JPMF Global

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

The idea behind SIVERS SEMICONDUCTORS AB and JPMF Global Natural 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.