Correlation Between Sivers IMA and Minesto AB

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

Diversification Opportunities for Sivers IMA and Minesto AB

0.25

Correlation Coefficient

Sivers IMA  Minesto AB

Modest diversification

The 3 months correlation between Sivers and Minesto is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sivers IMA Holding and Minesto AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minesto 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 Minesto AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minesto AB has no effect on the direction of Sivers IMA i.e., Sivers IMA and Minesto AB go up and down completely randomly.

Pair Corralation between Sivers IMA and Minesto AB

Assuming the 90 days trading horizon Sivers IMA is expected to generate 6.15 times less return on investment than Minesto AB. But when comparing it to its historical volatility, Sivers IMA Holding is 2.26 times less risky than Minesto AB. It trades about 0.07 of its potential returns per unit of risk. Minesto AB is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  155.00  in Minesto AB on April 24, 2025 and sell it today you would earn a total of  200.00  from holding Minesto AB or generate 129.03% return on investment over 90 days.

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

Sivers IMA Holding  vs.  Minesto AB

Sivers IMA Holding

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sivers IMA Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Sivers IMA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Minesto AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Minesto AB are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Minesto AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sivers IMA and Minesto AB

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

The idea behind Sivers IMA Holding and Minesto 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.