Correlation Between Superior Plus and SIEMENS AG
Can any of the company-specific risk be diversified away by investing in both Superior Plus 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 Superior Plus and SIEMENS AG 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 AG SP, you can compare the effects of market volatilities on Superior Plus 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 Superior Plus with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and SIEMENS AG.
Diversification Opportunities for Superior Plus and SIEMENS AG
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Superior and SIEMENS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp 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 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 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 Superior Plus i.e., Superior Plus and SIEMENS AG go up and down completely randomly.
Pair Corralation between Superior Plus and SIEMENS AG
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the SIEMENS AG. In addition to that, Superior Plus is 1.41 times more volatile than SIEMENS AG SP. It trades about -0.05 of its total potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.04 per unit of volatility. If you would invest 7,953 in SIEMENS AG SP on August 29, 2024 and sell it today you would earn a total of 897.00 from holding SIEMENS AG SP or generate 11.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. SIEMENS AG SP
Performance |
| Timeline |
| Superior Plus Corp |
| SIEMENS AG SP |
Superior Plus and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and SIEMENS AG
The main advantage of trading using opposite Superior Plus and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus 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.| Superior Plus vs. Meli Hotels International | Superior Plus vs. InterContinental Hotels Group | Superior Plus vs. PT Bank Maybank | Superior Plus vs. Pebblebrook Hotel Trust |
| SIEMENS AG vs. Superior Plus Corp | SIEMENS AG vs. NMI Holdings | SIEMENS AG vs. SIVERS SEMICONDUCTORS AB | SIEMENS AG vs. Talanx AG |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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