Correlation Between FANUC PUNSPADR and SIEMENS AG
Can any of the company-specific risk be diversified away by investing in both FANUC PUNSPADR 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 FANUC PUNSPADR and SIEMENS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FANUC PUNSPADR 110 and SIEMENS AG SP, you can compare the effects of market volatilities on FANUC PUNSPADR 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 FANUC PUNSPADR with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of FANUC PUNSPADR and SIEMENS AG.
Diversification Opportunities for FANUC PUNSPADR and SIEMENS AG
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FANUC and SIEMENS is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding FANUC PUNSPADR 110 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 FANUC PUNSPADR 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 FANUC PUNSPADR 110 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 FANUC PUNSPADR i.e., FANUC PUNSPADR and SIEMENS AG go up and down completely randomly.
Pair Corralation between FANUC PUNSPADR and SIEMENS AG
Assuming the 90 days trading horizon FANUC PUNSPADR is expected to generate 1.42 times less return on investment than SIEMENS AG. In addition to that, FANUC PUNSPADR is 1.16 times more volatile than SIEMENS AG SP. It trades about 0.07 of its total potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.11 per unit of volatility. If you would invest 8,250 in SIEMENS AG SP on November 2, 2024 and sell it today you would earn a total of 1,750 from holding SIEMENS AG SP or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FANUC PUNSPADR 110 vs. SIEMENS AG SP
Performance |
| Timeline |
| FANUC PUNSPADR 110 |
| SIEMENS AG SP |
FANUC PUNSPADR and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FANUC PUNSPADR and SIEMENS AG
The main advantage of trading using opposite FANUC PUNSPADR and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FANUC PUNSPADR 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.| FANUC PUNSPADR vs. Tokyu Construction Co | FANUC PUNSPADR vs. Hanison Construction Holdings | FANUC PUNSPADR vs. AUST AGRICULTURAL | FANUC PUNSPADR vs. Granite Construction |
| SIEMENS AG vs. Siemens Aktiengesellschaft | SIEMENS AG vs. Siemens Aktiengesellschaft | SIEMENS AG vs. Schneider Electric SE | SIEMENS AG vs. Atlas Copco A |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |