Correlation Between CNVISION MEDIA and SIEMENS AG
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA 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 CNVISION MEDIA and SIEMENS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and SIEMENS AG SP, you can compare the effects of market volatilities on CNVISION MEDIA 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 CNVISION MEDIA with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and SIEMENS AG.
Diversification Opportunities for CNVISION MEDIA and SIEMENS AG
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CNVISION and SIEMENS is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and SIEMENS AG SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS AG SP and CNVISION MEDIA 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 CNVISION MEDIA 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 SP has no effect on the direction of CNVISION MEDIA i.e., CNVISION MEDIA and SIEMENS AG go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and SIEMENS AG
Assuming the 90 days trading horizon CNVISION MEDIA is expected to under-perform the SIEMENS AG. In addition to that, CNVISION MEDIA is 1.68 times more volatile than SIEMENS AG SP. It trades about -0.01 of its total potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.05 per unit of volatility. If you would invest 6,204 in SIEMENS AG SP on September 2, 2024 and sell it today you would earn a total of 2,746 from holding SIEMENS AG SP or generate 44.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNVISION MEDIA vs. SIEMENS AG SP
Performance |
| Timeline |
| CNVISION MEDIA |
| SIEMENS AG SP |
CNVISION MEDIA and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNVISION MEDIA and SIEMENS AG
The main advantage of trading using opposite CNVISION MEDIA and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA 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.| CNVISION MEDIA vs. SIVERS SEMICONDUCTORS AB | CNVISION MEDIA vs. Darden Restaurants | CNVISION MEDIA vs. Reliance Steel Aluminum | CNVISION MEDIA vs. Q2M Managementberatung AG |
| SIEMENS AG vs. NURAN WIRELESS INC | SIEMENS AG vs. ATRESMEDIA | SIEMENS AG vs. CNVISION MEDIA | SIEMENS AG vs. CENTURIA OFFICE REIT |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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