Correlation Between SALTX TECHNOLOGY and SIEMENS AG
Can any of the company-specific risk be diversified away by investing in both SALTX TECHNOLOGY and SIEMENS AG 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 SALTX TECHNOLOGY and SIEMENS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SALTX TECHNOLOGY HLDG and SIEMENS AG SP, you can compare the effects of market volatilities on SALTX TECHNOLOGY and SIEMENS AG 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 SALTX TECHNOLOGY with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of SALTX TECHNOLOGY and SIEMENS AG.
Diversification Opportunities for SALTX TECHNOLOGY and SIEMENS AG
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SALTX and SIEMENS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SALTX TECHNOLOGY HLDG and SIEMENS AG SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS AG SP and SALTX TECHNOLOGY 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 SALTX TECHNOLOGY HLDG are associated (or correlated) with SIEMENS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEMENS AG SP has no effect on the direction of SALTX TECHNOLOGY i.e., SALTX TECHNOLOGY and SIEMENS AG go up and down completely randomly.
Pair Corralation between SALTX TECHNOLOGY and SIEMENS AG
Assuming the 90 days horizon SALTX TECHNOLOGY HLDG is expected to under-perform the SIEMENS AG. In addition to that, SALTX TECHNOLOGY is 1.9 times more volatile than SIEMENS AG SP. It trades about -0.15 of its total potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.12 per unit of volatility. If you would invest 8,900 in SIEMENS AG SP on September 27, 2024 and sell it today you would earn a total of 450.00 from holding SIEMENS AG SP or generate 5.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SALTX TECHNOLOGY HLDG vs. SIEMENS AG SP
Performance |
| Timeline |
| SALTX TECHNOLOGY HLDG |
| SIEMENS AG SP |
SALTX TECHNOLOGY and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SALTX TECHNOLOGY and SIEMENS AG
The main advantage of trading using opposite SALTX TECHNOLOGY and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SALTX TECHNOLOGY position performs unexpectedly, SIEMENS AG 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 AG will offset losses from the drop in SIEMENS AG's long position.| SALTX TECHNOLOGY vs. SIEMENS AG SP | SALTX TECHNOLOGY vs. Siemens Aktiengesellschaft | SALTX TECHNOLOGY vs. Schneider Electric SE | SALTX TECHNOLOGY vs. Atlas Copco A |
| SIEMENS AG vs. Siemens Aktiengesellschaft | SIEMENS AG vs. Schneider Electric SE | SIEMENS AG vs. Atlas Copco A | SIEMENS AG vs. RATIONAL Aktiengesellschaft |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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