Correlation Between TROPHY GAMES and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES 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 TROPHY GAMES and Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and Siemens Healthineers AG, you can compare the effects of market volatilities on TROPHY GAMES 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 TROPHY GAMES with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and Siemens Healthineers.
Diversification Opportunities for TROPHY GAMES and Siemens Healthineers
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TROPHY and Siemens is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and TROPHY GAMES 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 TROPHY GAMES DEV 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 TROPHY GAMES i.e., TROPHY GAMES and Siemens Healthineers go up and down completely randomly.
Pair Corralation between TROPHY GAMES and Siemens Healthineers
Assuming the 90 days horizon TROPHY GAMES DEV is expected to generate 2.1 times more return on investment than Siemens Healthineers. However, TROPHY GAMES is 2.1 times more volatile than Siemens Healthineers AG. It trades about 0.29 of its potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.16 per unit of risk. If you would invest 78.00 in TROPHY GAMES DEV on October 28, 2024 and sell it today you would earn a total of 12.00 from holding TROPHY GAMES DEV or generate 15.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. Siemens Healthineers AG
Performance |
| Timeline |
| TROPHY GAMES DEV |
| Siemens Healthineers |
TROPHY GAMES and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and Siemens Healthineers
The main advantage of trading using opposite TROPHY GAMES and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES 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.| TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. NEXON Co | TROPHY GAMES vs. Take Two Interactive Software | TROPHY GAMES vs. Aristocrat Leisure Limited |
| Siemens Healthineers vs. PLAYTIKA HOLDING DL 01 | Siemens Healthineers vs. USWE SPORTS AB | Siemens Healthineers vs. PLAY2CHILL SA ZY | Siemens Healthineers vs. InPlay Oil Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |