Correlation Between MOBILE FACTORY and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY and Siemens Healthineers 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 MOBILE FACTORY and Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and Siemens Healthineers AG, you can compare the effects of market volatilities on MOBILE FACTORY and Siemens Healthineers 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 MOBILE FACTORY with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and Siemens Healthineers.
Diversification Opportunities for MOBILE FACTORY and Siemens Healthineers
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MOBILE and Siemens is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and MOBILE FACTORY 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 MOBILE FACTORY INC are associated (or correlated) with Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of MOBILE FACTORY i.e., MOBILE FACTORY and Siemens Healthineers go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and Siemens Healthineers
Assuming the 90 days horizon MOBILE FACTORY is expected to generate 3.45 times less return on investment than Siemens Healthineers. In addition to that, MOBILE FACTORY is 1.13 times more volatile than Siemens Healthineers AG. It trades about 0.04 of its total potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.16 per unit of volatility. If you would invest 5,208 in Siemens Healthineers AG on October 26, 2024 and sell it today you would earn a total of 200.00 from holding Siemens Healthineers AG or generate 3.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. Siemens Healthineers AG
Performance |
| Timeline |
| MOBILE FACTORY INC |
| Siemens Healthineers |
MOBILE FACTORY and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and Siemens Healthineers
The main advantage of trading using opposite MOBILE FACTORY and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY position performs unexpectedly, Siemens Healthineers 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 Siemens Healthineers will offset losses from the drop in Siemens Healthineers' long position.| MOBILE FACTORY vs. Uber Technologies | MOBILE FACTORY vs. United Natural Foods | MOBILE FACTORY vs. MTY Food Group | MOBILE FACTORY vs. Performance Food Group |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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