Correlation Between Siemens Energy and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Siemens Energy and Superior Plus 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 Superior Plus 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 Superior Plus Corp, you can compare the effects of market volatilities on Siemens Energy and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Energy and Superior Plus.
Diversification Opportunities for Siemens Energy and Superior Plus
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siemens and Superior is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Energy AG and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Siemens Energy i.e., Siemens Energy and Superior Plus go up and down completely randomly.
Pair Corralation between Siemens Energy and Superior Plus
Assuming the 90 days trading horizon Siemens Energy AG is expected to under-perform the Superior Plus. In addition to that, Siemens Energy is 3.0 times more volatile than Superior Plus Corp. It trades about -0.01 of its total potential returns per unit of risk. Superior Plus Corp is currently generating about 0.06 per unit of volatility. If you would invest 406.00 in Superior Plus Corp on October 30, 2024 and sell it today you would earn a total of 8.00 from holding Superior Plus Corp or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Siemens Energy AG vs. Superior Plus Corp
Performance |
| Timeline |
| Siemens Energy AG |
| Superior Plus Corp |
Siemens Energy and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Energy and Superior Plus
The main advantage of trading using opposite Siemens Energy and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Energy position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Siemens Energy vs. ZINC MEDIA GR | Siemens Energy vs. ANTA SPORTS PRODUCT | Siemens Energy vs. MAGNUM MINING EXP | Siemens Energy vs. Prosiebensat 1 Media |
| Superior Plus vs. BANKINTER ADR 2007 | Superior Plus vs. Direct Line Insurance | Superior Plus vs. SUN LIFE FINANCIAL | Superior Plus vs. United Airlines Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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