Correlation Between Bone Biologics and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both Bone Biologics 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 Bone Biologics and Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bone Biologics Corp and Siemens Healthineers AG, you can compare the effects of market volatilities on Bone Biologics 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 Bone Biologics with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bone Biologics and Siemens Healthineers.
Diversification Opportunities for Bone Biologics and Siemens Healthineers
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bone and Siemens is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bone Biologics Corp and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and Bone Biologics 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 Bone Biologics Corp 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 Bone Biologics i.e., Bone Biologics and Siemens Healthineers go up and down completely randomly.
Pair Corralation between Bone Biologics and Siemens Healthineers
Given the investment horizon of 90 days Bone Biologics Corp is expected to generate 8.84 times more return on investment than Siemens Healthineers. However, Bone Biologics is 8.84 times more volatile than Siemens Healthineers AG. It trades about 0.03 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 158.00 in Bone Biologics Corp on November 28, 2024 and sell it today you would lose (65.00) from holding Bone Biologics Corp or give up 41.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bone Biologics Corp vs. Siemens Healthineers AG
Performance |
| Timeline |
| Bone Biologics Corp |
| Siemens Healthineers |
Bone Biologics and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bone Biologics and Siemens Healthineers
The main advantage of trading using opposite Bone Biologics and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bone Biologics 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.| Bone Biologics vs. Bluejay Diagnostics | Bone Biologics vs. Nuwellis | Bone Biologics vs. Heart Test Laboratories | Bone Biologics vs. Tivic Health Systems |
| Siemens Healthineers vs. Merck KGaA ADR | Siemens Healthineers vs. CSL | Siemens Healthineers vs. Essilor International SA | Siemens Healthineers vs. Hoya Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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