Correlation Between Sivers IMA and Acconeer

Can any of the company-specific risk be diversified away by investing in both Sivers IMA and Acconeer 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 IMA and Acconeer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sivers IMA Holding and Acconeer AB, you can compare the effects of market volatilities on Sivers IMA and Acconeer 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 IMA with a short position of Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sivers IMA and Acconeer.

Diversification Opportunities for Sivers IMA and Acconeer

0.57

Correlation Coefficient

Sivers IMA  Acconeer

Very weak diversification

The 3 months correlation between Sivers and Acconeer is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB and Sivers IMA 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 IMA Holding are associated (or correlated) with Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Sivers IMA i.e., Sivers IMA and Acconeer go up and down completely randomly.

Pair Corralation between Sivers IMA and Acconeer

Assuming the 90 days trading horizon Sivers IMA Holding is expected to generate 3.84 times more return on investment than Acconeer. However, Sivers IMA is 3.84 times more volatile than Acconeer AB. It trades about 0.07 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.2 per unit of risk. If you would invest  385.00  in Sivers IMA Holding on October 15, 2024 and sell it today you would earn a total of  52.00  from holding Sivers IMA Holding or generate 13.51% return on investment over 90 days.

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

Sivers IMA Holding  vs.  Acconeer AB

Sivers IMA Holding

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sivers IMA Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sivers IMA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Acconeer AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Acconeer AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Sivers IMA and Acconeer

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

The idea behind Sivers IMA Holding and Acconeer AB 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.