Correlation Between Siemens Energy and XTANT MEDICAL
Can any of the company-specific risk be diversified away by investing in both Siemens Energy and XTANT MEDICAL 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 XTANT MEDICAL 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 XTANT MEDICAL HLDGS, you can compare the effects of market volatilities on Siemens Energy and XTANT MEDICAL 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 XTANT MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Energy and XTANT MEDICAL.
Diversification Opportunities for Siemens Energy and XTANT MEDICAL
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siemens and XTANT is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Energy AG and XTANT MEDICAL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XTANT MEDICAL HLDGS 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 XTANT MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XTANT MEDICAL HLDGS has no effect on the direction of Siemens Energy i.e., Siemens Energy and XTANT MEDICAL go up and down completely randomly.
Pair Corralation between Siemens Energy and XTANT MEDICAL
Assuming the 90 days trading horizon Siemens Energy AG is expected to generate 0.72 times more return on investment than XTANT MEDICAL. However, Siemens Energy AG is 1.39 times less risky than XTANT MEDICAL. It trades about 0.08 of its potential returns per unit of risk. XTANT MEDICAL HLDGS is currently generating about 0.0 per unit of risk. If you would invest 1,756 in Siemens Energy AG on September 24, 2024 and sell it today you would earn a total of 3,356 from holding Siemens Energy AG or generate 191.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Energy AG vs. XTANT MEDICAL HLDGS
Performance |
| Timeline |
| Siemens Energy AG |
| XTANT MEDICAL HLDGS |
Siemens Energy and XTANT MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Energy and XTANT MEDICAL
The main advantage of trading using opposite Siemens Energy and XTANT MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Energy position performs unexpectedly, XTANT MEDICAL 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 XTANT MEDICAL will offset losses from the drop in XTANT MEDICAL's long position.| Siemens Energy vs. LANDSEA HOMES P | Siemens Energy vs. Taylor Morrison Home | Siemens Energy vs. American Homes 4 | Siemens Energy vs. Autohome ADR |
| XTANT MEDICAL vs. SHIN ETSU CHEMICAL | XTANT MEDICAL vs. SEKISUI CHEMICAL | XTANT MEDICAL vs. Soken Chemical Engineering | XTANT MEDICAL vs. Silicon Motion Technology |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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