Correlation Between SIVERS SEMICONDUCTORS and CREMETRSBI DL-001

Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and CREMETRSBI DL-001 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 CREMETRSBI DL-001 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 CREMECOMTRSBI DL 001, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and CREMETRSBI DL-001 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 CREMETRSBI DL-001. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and CREMETRSBI DL-001.

Diversification Opportunities for SIVERS SEMICONDUCTORS and CREMETRSBI DL-001

-0.33

Correlation Coefficient

SIVERS SEMICONDUCTORS  CREMETRSBI DL-001

Very good diversification

The 3 months correlation between SIVERS and CREMETRSBI is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and CREMECOMTRSBI DL 001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CREMECOMTRSBI DL 001 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 CREMETRSBI DL-001. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CREMECOMTRSBI DL 001 has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and CREMETRSBI DL-001 go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and CREMETRSBI DL-001

Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to generate 0.94 times more return on investment than CREMETRSBI DL-001. However, SIVERS SEMICONDUCTORS AB is 1.06 times less risky than CREMETRSBI DL-001. It trades about 0.21 of its potential returns per unit of risk. CREMECOMTRSBI DL 001 is currently generating about -0.04 per unit of risk. If you would invest  19.00  in SIVERS SEMICONDUCTORS AB on December 4, 2024 and sell it today you would earn a total of  24.00  from holding SIVERS SEMICONDUCTORS AB or generate 126.32% return on investment over 90 days.

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

SIVERS SEMICONDUCTORS AB  vs.  CREMECOMTRSBI DL 001

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SIVERS SEMICONDUCTORS AB are ranked lower than 16 (%) 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.

CREMECOMTRSBI DL 001

Risk-Adjusted Performance

Very Weak

Over the last 90 days CREMECOMTRSBI DL 001 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 April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with SIVERS SEMICONDUCTORS and CREMETRSBI DL-001

The main advantage of trading using opposite SIVERS SEMICONDUCTORS and CREMETRSBI DL-001 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIVERS SEMICONDUCTORS position performs unexpectedly, CREMETRSBI DL-001 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 CREMETRSBI DL-001 will offset losses from the drop in CREMETRSBI DL-001's long position.

The idea behind SIVERS SEMICONDUCTORS AB and CREMECOMTRSBI DL 001 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.