Correlation Between SIVERS SEMICONDUCTORS and SES SA

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

Diversification Opportunities for SIVERS SEMICONDUCTORS and SES SA

0.0

Correlation Coefficient

SIVERS SEMICONDUCTORS  SES SA

Pay attention - limited upside

The 3 months correlation between SIVERS and SES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and SES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES SA 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 SES SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES SA has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and SES SA go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and SES SA

If you would invest (100.00) in SES SA on October 4, 2024 and sell it today you would earn a total of  100.00  from holding SES SA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SIVERS SEMICONDUCTORS AB  vs.  SES SA

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

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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.

SES SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SES SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SES SA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with SIVERS SEMICONDUCTORS and SES SA

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

The idea behind SIVERS SEMICONDUCTORS AB and SES SA 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.