Correlation Between Siemens Energy and Planet Fitness
Can any of the company-specific risk be diversified away by investing in both Siemens Energy and Planet Fitness 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 Siemens Energy and Planet Fitness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Energy AG and Planet Fitness, you can compare the effects of market volatilities on Siemens Energy and Planet Fitness 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 Siemens Energy with a short position of Planet Fitness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Energy and Planet Fitness.
Diversification Opportunities for Siemens Energy and Planet Fitness
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siemens and Planet is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Energy AG and Planet Fitness in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet Fitness and Siemens Energy 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 Siemens Energy AG are associated (or correlated) with Planet Fitness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet Fitness has no effect on the direction of Siemens Energy i.e., Siemens Energy and Planet Fitness go up and down completely randomly.
Pair Corralation between Siemens Energy and Planet Fitness
Assuming the 90 days trading horizon Siemens Energy AG is expected to generate 1.25 times more return on investment than Planet Fitness. However, Siemens Energy is 1.25 times more volatile than Planet Fitness. It trades about 0.22 of its potential returns per unit of risk. Planet Fitness is currently generating about 0.17 per unit of risk. If you would invest 3,119 in Siemens Energy AG on October 18, 2024 and sell it today you would earn a total of 2,103 from holding Siemens Energy AG or generate 67.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Energy AG vs. Planet Fitness
Performance |
| Timeline |
| Siemens Energy AG |
| Planet Fitness |
Siemens Energy and Planet Fitness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Energy and Planet Fitness
The main advantage of trading using opposite Siemens Energy and Planet Fitness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Energy position performs unexpectedly, Planet Fitness 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 Planet Fitness will offset losses from the drop in Planet Fitness' long position.| Siemens Energy vs. Planet Fitness | Siemens Energy vs. YOOMA WELLNESS INC | Siemens Energy vs. INDO RAMA SYNTHETIC | Siemens Energy vs. Mitsubishi Gas Chemical |
| Planet Fitness vs. SQUIRREL MEDIA SA | Planet Fitness vs. CDL INVESTMENT | Planet Fitness vs. CNVISION MEDIA | Planet Fitness vs. GigaMedia |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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