Correlation Between Nuburu and Siemens AG
Can any of the company-specific risk be diversified away by investing in both Nuburu 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 Nuburu and Siemens AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuburu Inc and Siemens AG Class, you can compare the effects of market volatilities on Nuburu 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 Nuburu with a short position of Siemens AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuburu and Siemens AG.
Diversification Opportunities for Nuburu and Siemens AG
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nuburu and Siemens is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Nuburu Inc and Siemens AG Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens AG Class and Nuburu 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 Nuburu Inc 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 Class has no effect on the direction of Nuburu i.e., Nuburu and Siemens AG go up and down completely randomly.
Pair Corralation between Nuburu and Siemens AG
Given the investment horizon of 90 days Nuburu Inc is expected to under-perform the Siemens AG. In addition to that, Nuburu is 6.83 times more volatile than Siemens AG Class. It trades about -0.05 of its total potential returns per unit of risk. Siemens AG Class is currently generating about 0.05 per unit of volatility. If you would invest 13,010 in Siemens AG Class on August 28, 2024 and sell it today you would earn a total of 6,233 from holding Siemens AG Class or generate 47.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuburu Inc vs. Siemens AG Class
Performance |
| Timeline |
| Nuburu Inc |
| Siemens AG Class |
Nuburu and Siemens AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuburu and Siemens AG
The main advantage of trading using opposite Nuburu and Siemens AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuburu 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.| Nuburu vs. Aquagold International | Nuburu vs. Morningstar Unconstrained Allocation | Nuburu vs. High Yield Municipal Fund | Nuburu vs. Thrivent High Yield |
| Siemens AG vs. Shapeways Holdings, Common | Siemens AG vs. JE Cleantech Holdings | Siemens AG vs. Greenland Acquisition Corp | Siemens AG vs. Laser Photonics |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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