Correlation Between Artivion and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both Artivion 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 Artivion and Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artivion and Siemens Healthineers AG, you can compare the effects of market volatilities on Artivion 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 Artivion with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artivion and Siemens Healthineers.
Diversification Opportunities for Artivion and Siemens Healthineers
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Artivion and Siemens is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Artivion and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and Artivion 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 Artivion 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 Artivion i.e., Artivion and Siemens Healthineers go up and down completely randomly.
Pair Corralation between Artivion and Siemens Healthineers
Given the investment horizon of 90 days Artivion is expected to generate 0.78 times more return on investment than Siemens Healthineers. However, Artivion is 1.28 times less risky than Siemens Healthineers. It trades about 0.2 of its potential returns per unit of risk. Siemens Healthineers AG is currently generating about -0.12 per unit of risk. If you would invest 2,673 in Artivion on August 30, 2024 and sell it today you would earn a total of 232.00 from holding Artivion or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Artivion vs. Siemens Healthineers AG
Performance |
| Timeline |
| Artivion |
| Siemens Healthineers |
Artivion and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artivion and Siemens Healthineers
The main advantage of trading using opposite Artivion and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artivion 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.| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos Medical |
| Siemens Healthineers vs. Artivion | Siemens Healthineers vs. Anika Therapeutics | Siemens Healthineers vs. Sight Sciences | Siemens Healthineers vs. Orthofix Medical |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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