Correlation Between SIVERS SEMICONDUCTORS and Expat Macedonia

Can any of the company-specific risk be diversified away by investing in both SIVERS SEMICONDUCTORS and Expat Macedonia 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 Expat Macedonia 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 Expat Macedonia Mbi10, you can compare the effects of market volatilities on SIVERS SEMICONDUCTORS and Expat Macedonia 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 Expat Macedonia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIVERS SEMICONDUCTORS and Expat Macedonia.

Diversification Opportunities for SIVERS SEMICONDUCTORS and Expat Macedonia

-0.85

Correlation Coefficient

SIVERS SEMICONDUCTORS  Expat Macedonia

Pay attention - limited upside

The 3 months correlation between SIVERS and Expat is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and Expat Macedonia Mbi10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Macedonia Mbi10 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 Expat Macedonia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Macedonia Mbi10 has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and Expat Macedonia go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and Expat Macedonia

Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the Expat Macedonia. In addition to that, SIVERS SEMICONDUCTORS is 18.36 times more volatile than Expat Macedonia Mbi10. It trades about -0.11 of its total potential returns per unit of risk. Expat Macedonia Mbi10 is currently generating about 0.14 per unit of volatility. If you would invest  223.00  in Expat Macedonia Mbi10 on September 3, 2024 and sell it today you would earn a total of  9.00  from holding Expat Macedonia Mbi10 or generate 4.04% return on investment over 90 days.

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

SIVERS SEMICONDUCTORS AB  vs.  Expat Macedonia Mbi10

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

0 of 100

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 uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Expat Macedonia Mbi10

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Expat Macedonia Mbi10 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Expat Macedonia is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SIVERS SEMICONDUCTORS and Expat Macedonia

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

The idea behind SIVERS SEMICONDUCTORS AB and Expat Macedonia Mbi10 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.

Check out your portfolio center.

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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.