Correlation Between SIVERS SEMICONDUCTORS and ENSURGE MICROPOW

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

Diversification Opportunities for SIVERS SEMICONDUCTORS and ENSURGE MICROPOW

-0.55

Correlation Coefficient

SIVERS SEMICONDUCTORS  ENSURGE MICROPOW

Excellent diversification

The 3 months correlation between SIVERS and ENSURGE is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding SIVERS SEMICONDUCTORS AB and ENSURGE MICROPOW NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENSURGE MICROPOW 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 ENSURGE MICROPOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENSURGE MICROPOW has no effect on the direction of SIVERS SEMICONDUCTORS i.e., SIVERS SEMICONDUCTORS and ENSURGE MICROPOW go up and down completely randomly.

Pair Corralation between SIVERS SEMICONDUCTORS and ENSURGE MICROPOW

Assuming the 90 days horizon SIVERS SEMICONDUCTORS AB is expected to under-perform the ENSURGE MICROPOW. But the stock apears to be less risky and, when comparing its historical volatility, SIVERS SEMICONDUCTORS AB is 24.71 times less risky than ENSURGE MICROPOW. The stock trades about -0.02 of its potential returns per unit of risk. The ENSURGE MICROPOW NK is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  29.00  in ENSURGE MICROPOW NK on March 28, 2024 and sell it today you would lose (18.00) from holding ENSURGE MICROPOW NK or give up 62.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.23%
Values	Daily Returns

SIVERS SEMICONDUCTORS AB  vs.  ENSURGE MICROPOW NK

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 July 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ENSURGE MICROPOW

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days ENSURGE MICROPOW NK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly uncertain basic indicators, ENSURGE MICROPOW reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SIVERS SEMICONDUCTORS and ENSURGE MICROPOW

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

The idea behind SIVERS SEMICONDUCTORS AB and ENSURGE MICROPOW NK 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.