Correlation Between GMO Internet and SIVERS SEMICONDUCTORS

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

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

Diversification Opportunities for GMO Internet and SIVERS SEMICONDUCTORS

0.61

Correlation Coefficient

GMO Internet  SIVERS SEMICONDUCTORS

Poor diversification

The 3 months correlation between GMO and SIVERS is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding GMO Internet and SIVERS SEMICONDUCTORS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIVERS SEMICONDUCTORS and GMO Internet 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 GMO Internet are associated (or correlated) with SIVERS SEMICONDUCTORS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIVERS SEMICONDUCTORS has no effect on the direction of GMO Internet i.e., GMO Internet and SIVERS SEMICONDUCTORS go up and down completely randomly.

Pair Corralation between GMO Internet and SIVERS SEMICONDUCTORS

Assuming the 90 days horizon GMO Internet is expected to under-perform the SIVERS SEMICONDUCTORS. But the stock apears to be less risky and, when comparing its historical volatility, GMO Internet is 2.89 times less risky than SIVERS SEMICONDUCTORS. The stock trades about -0.01 of its potential returns per unit of risk. The SIVERS SEMICONDUCTORS AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  29.00  in SIVERS SEMICONDUCTORS AB on April 20, 2025 and sell it today you would earn a total of  10.00  from holding SIVERS SEMICONDUCTORS AB or generate 34.48% return on investment over 90 days.

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

GMO Internet  vs.  SIVERS SEMICONDUCTORS AB

GMO Internet

Risk-Adjusted Performance

Very Weak

Over the last 90 days GMO Internet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GMO Internet is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

SIVERS SEMICONDUCTORS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SIVERS SEMICONDUCTORS AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SIVERS SEMICONDUCTORS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GMO Internet and SIVERS SEMICONDUCTORS

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

The idea behind GMO Internet and SIVERS SEMICONDUCTORS 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.