Correlation Between Siemens Energy and ZINC MEDIA
Can any of the company-specific risk be diversified away by investing in both Siemens Energy and ZINC MEDIA 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 ZINC MEDIA 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 ZINC MEDIA GR, you can compare the effects of market volatilities on Siemens Energy and ZINC MEDIA 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 ZINC MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Energy and ZINC MEDIA.
Diversification Opportunities for Siemens Energy and ZINC MEDIA
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siemens and ZINC is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Energy AG and ZINC MEDIA GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINC MEDIA GR 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 ZINC MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINC MEDIA GR has no effect on the direction of Siemens Energy i.e., Siemens Energy and ZINC MEDIA go up and down completely randomly.
Pair Corralation between Siemens Energy and ZINC MEDIA
Assuming the 90 days trading horizon Siemens Energy is expected to generate 2.52 times less return on investment than ZINC MEDIA. In addition to that, Siemens Energy is 3.82 times more volatile than ZINC MEDIA GR. It trades about 0.03 of its total potential returns per unit of risk. ZINC MEDIA GR is currently generating about 0.24 per unit of volatility. If you would invest 63.00 in ZINC MEDIA GR on November 7, 2024 and sell it today you would earn a total of 5.00 from holding ZINC MEDIA GR or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Siemens Energy AG vs. ZINC MEDIA GR
Performance |
| Timeline |
| Siemens Energy AG |
| ZINC MEDIA GR |
Siemens Energy and ZINC MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Energy and ZINC MEDIA
The main advantage of trading using opposite Siemens Energy and ZINC MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Energy position performs unexpectedly, ZINC MEDIA 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 ZINC MEDIA will offset losses from the drop in ZINC MEDIA's long position.| Siemens Energy vs. Television Broadcasts Limited | Siemens Energy vs. Clean Energy Fuels | Siemens Energy vs. Warner Music Group | Siemens Energy vs. Broadridge Financial Solutions |
| ZINC MEDIA vs. Siamgas And Petrochemicals | ZINC MEDIA vs. CONTAGIOUS GAMING INC | ZINC MEDIA vs. AIR PRODCHEMICALS | ZINC MEDIA vs. Salesforce |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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