Correlation Between ANT and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both ANT and Siemens Healthineers 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 ANT and Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and Siemens Healthineers AG, you can compare the effects of market volatilities on ANT and Siemens Healthineers 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 ANT with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and Siemens Healthineers.
Diversification Opportunities for ANT and Siemens Healthineers
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ANT and Siemens is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ANT and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and ANT 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 ANT are associated (or correlated) with Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of ANT i.e., ANT and Siemens Healthineers go up and down completely randomly.
Pair Corralation between ANT and Siemens Healthineers
Assuming the 90 days trading horizon ANT is expected to generate 57.57 times more return on investment than Siemens Healthineers. However, ANT is 57.57 times more volatile than Siemens Healthineers AG. It trades about 0.14 of its potential returns per unit of risk. Siemens Healthineers AG is currently generating about -0.01 per unit of risk. If you would invest 935.00 in ANT on October 16, 2024 and sell it today you would lose (788.00) from holding ANT or give up 84.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
ANT vs. Siemens Healthineers AG
Performance |
| Timeline |
| ANT |
| Siemens Healthineers |
ANT and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and Siemens Healthineers
The main advantage of trading using opposite ANT and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT position performs unexpectedly, Siemens Healthineers 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 Healthineers will offset losses from the drop in Siemens Healthineers' long position.The idea behind ANT and Siemens Healthineers AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Siemens Healthineers vs. Playa Hotels Resorts | Siemens Healthineers vs. LG Display Co | Siemens Healthineers vs. COLUMBIA SPORTSWEAR | Siemens Healthineers vs. PLAYSTUDIOS A DL 0001 |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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