Correlation Between FRACTAL GAMING and Siemens Healthineers

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Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING 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 FRACTAL GAMING and Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRACTAL GAMING GROUP and Siemens Healthineers AG, you can compare the effects of market volatilities on FRACTAL GAMING 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 FRACTAL GAMING with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and Siemens Healthineers.

Diversification Opportunities for FRACTAL GAMING and Siemens Healthineers

0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between FRACTAL and Siemens is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and FRACTAL GAMING 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 FRACTAL GAMING GROUP 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 FRACTAL GAMING i.e., FRACTAL GAMING and Siemens Healthineers go up and down completely randomly.

Pair Corralation between FRACTAL GAMING and Siemens Healthineers

Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the Siemens Healthineers. In addition to that, FRACTAL GAMING is 1.17 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 0.19 per unit of volatility. If you would invest  5,212  in Siemens Healthineers AG on November 7, 2024 and sell it today you would earn a total of  274.00  from holding Siemens Healthineers AG or generate 5.26% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

FRACTAL GAMING GROUP  vs.  Siemens Healthineers AG

 Performance 
       Timeline  
FRACTAL GAMING GROUP 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in FRACTAL GAMING GROUP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, FRACTAL GAMING may actually be approaching a critical reversion point that can send shares even higher in March 2025.
Siemens Healthineers 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Siemens Healthineers AG are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Siemens Healthineers is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

FRACTAL GAMING and Siemens Healthineers Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FRACTAL GAMING and Siemens Healthineers

The main advantage of trading using opposite FRACTAL GAMING and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING 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.
The idea behind FRACTAL GAMING GROUP and Siemens Healthineers AG 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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