Correlation Between American Commerce and Siemens Energy
Can any of the company-specific risk be diversified away by investing in both American Commerce 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 American Commerce and Siemens Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Commerce Solutions and Siemens Energy AG, you can compare the effects of market volatilities on American Commerce 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 American Commerce with a short position of Siemens Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Commerce and Siemens Energy.
Diversification Opportunities for American Commerce and Siemens Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Siemens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Commerce Solutions 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 American Commerce 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 American Commerce Solutions 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 American Commerce i.e., American Commerce and Siemens Energy go up and down completely randomly.
Pair Corralation between American Commerce and Siemens Energy
If you would invest 4,103 in Siemens Energy AG on August 29, 2024 and sell it today you would earn a total of 1,052 from holding Siemens Energy AG or generate 25.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Commerce Solutions vs. Siemens Energy AG
Performance |
| Timeline |
| American Commerce |
| Siemens Energy AG |
American Commerce and Siemens Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Commerce and Siemens Energy
The main advantage of trading using opposite American Commerce and Siemens Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Commerce 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.| American Commerce vs. Aumann AG | American Commerce vs. Alfa Laval AB | American Commerce vs. Arista Power | American Commerce vs. Atlas Copco AB |
| Siemens Energy vs. SPX Corp | Siemens Energy vs. Nuscale Power Corp | Siemens Energy vs. Vestas Wind Systems | Siemens Energy vs. Nordex SE |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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