Correlation Between International Game and Siemens Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both International Game and Siemens Aktiengesellscha 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 International Game and Siemens Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and Siemens Aktiengesellschaft, you can compare the effects of market volatilities on International Game and Siemens Aktiengesellscha 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 International Game with a short position of Siemens Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Siemens Aktiengesellscha.
Diversification Opportunities for International Game and Siemens Aktiengesellscha
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Siemens is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Siemens Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Aktiengesellscha and International Game 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 International Game Technology are associated (or correlated) with Siemens Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Aktiengesellscha has no effect on the direction of International Game i.e., International Game and Siemens Aktiengesellscha go up and down completely randomly.
Pair Corralation between International Game and Siemens Aktiengesellscha
Assuming the 90 days horizon International Game Technology is expected to under-perform the Siemens Aktiengesellscha. In addition to that, International Game is 1.35 times more volatile than Siemens Aktiengesellschaft. It trades about -0.15 of its total potential returns per unit of risk. Siemens Aktiengesellschaft is currently generating about 0.24 per unit of volatility. If you would invest 18,030 in Siemens Aktiengesellschaft on September 13, 2024 and sell it today you would earn a total of 1,492 from holding Siemens Aktiengesellschaft or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Siemens Aktiengesellschaft
Performance |
| Timeline |
| International Game |
| Siemens Aktiengesellscha |
International Game and Siemens Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Siemens Aktiengesellscha
The main advantage of trading using opposite International Game and Siemens Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game position performs unexpectedly, Siemens Aktiengesellscha 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 Aktiengesellscha will offset losses from the drop in Siemens Aktiengesellscha's long position.| International Game vs. Scientific Games | International Game vs. Superior Plus Corp | International Game vs. SIVERS SEMICONDUCTORS AB | International Game vs. NorAm Drilling AS |
| Siemens Aktiengesellscha vs. METHODE ELECTRONICS | Siemens Aktiengesellscha vs. LPKF Laser Electronics | Siemens Aktiengesellscha vs. Clearside Biomedical | Siemens Aktiengesellscha vs. STMICROELECTRONICS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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