Correlation Between Superior Plus and SIEMENS ENERGY
Can any of the company-specific risk be diversified away by investing in both Superior Plus and SIEMENS ENERGY 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 Superior Plus and SIEMENS ENERGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and SIEMENS ENERGY AG, you can compare the effects of market volatilities on Superior Plus and SIEMENS ENERGY 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 Superior Plus with a short position of SIEMENS ENERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and SIEMENS ENERGY.
Diversification Opportunities for Superior Plus and SIEMENS ENERGY
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Superior and SIEMENS is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and SIEMENS ENERGY AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS ENERGY AG and Superior Plus 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 Superior Plus Corp are associated (or correlated) with SIEMENS ENERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEMENS ENERGY AG has no effect on the direction of Superior Plus i.e., Superior Plus and SIEMENS ENERGY go up and down completely randomly.
Pair Corralation between Superior Plus and SIEMENS ENERGY
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the SIEMENS ENERGY. In addition to that, Superior Plus is 1.64 times more volatile than SIEMENS ENERGY AG. It trades about -0.01 of its total potential returns per unit of risk. SIEMENS ENERGY AG is currently generating about 0.44 per unit of volatility. If you would invest 3,680 in SIEMENS ENERGY AG on August 29, 2024 and sell it today you would earn a total of 1,280 from holding SIEMENS ENERGY AG or generate 34.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. SIEMENS ENERGY AG
Performance |
| Timeline |
| Superior Plus Corp |
| SIEMENS ENERGY AG |
Superior Plus and SIEMENS ENERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and SIEMENS ENERGY
The main advantage of trading using opposite Superior Plus and SIEMENS ENERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, SIEMENS ENERGY 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 ENERGY will offset losses from the drop in SIEMENS ENERGY's long position.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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