Correlation Between Sivers IMA and Bambuser

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

Diversification Opportunities for Sivers IMA and Bambuser

-0.12

Correlation Coefficient

Sivers IMA  Bambuser

Good diversification

The 3 months correlation between Sivers and Bambuser is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and Bambuser AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bambuser 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 Bambuser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bambuser AB has no effect on the direction of Sivers IMA i.e., Sivers IMA and Bambuser go up and down completely randomly.

Pair Corralation between Sivers IMA and Bambuser

Assuming the 90 days trading horizon Sivers IMA is expected to generate 10.27 times less return on investment than Bambuser. But when comparing it to its historical volatility, Sivers IMA Holding is 4.71 times less risky than Bambuser. It trades about 0.04 of its potential returns per unit of risk. Bambuser AB is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  50.00  in Bambuser AB on April 25, 2025 and sell it today you would earn a total of  22.00  from holding Bambuser AB or generate 44.0% return on investment over 90 days.

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

Sivers IMA Holding  vs.  Bambuser AB

Sivers IMA Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sivers IMA Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sivers IMA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Bambuser AB

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bambuser AB are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bambuser unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sivers IMA and Bambuser

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

The idea behind Sivers IMA Holding and Bambuser 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.