Correlation Between Sivers IMA and Kancera AB

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

Diversification Opportunities for Sivers IMA and Kancera AB

0.95

Correlation Coefficient

Sivers IMA  Kancera AB

Almost no diversification

The 3 months correlation between Sivers and Kancera is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and Kancera AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kancera 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 Kancera AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kancera AB has no effect on the direction of Sivers IMA i.e., Sivers IMA and Kancera AB go up and down completely randomly.

Pair Corralation between Sivers IMA and Kancera AB

Assuming the 90 days trading horizon Sivers IMA Holding is expected to under-perform the Kancera AB. But the stock apears to be less risky and, when comparing its historical volatility, Sivers IMA Holding is 1.35 times less risky than Kancera AB. The stock trades about -0.02 of its potential returns per unit of risk. The Kancera AB is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  215.00  in Kancera AB on September 4, 2024 and sell it today you would lose (113.00) from holding Kancera AB or give up 52.56% of portfolio value over 90 days.

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

Sivers IMA Holding  vs.  Kancera AB

Sivers IMA Holding

Risk-Adjusted Performance

0 of 100

Very Weak

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

Kancera AB

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kancera AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 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 Kancera AB

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

The idea behind Sivers IMA Holding and Kancera 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.