Correlation Between DAX Index and Siemens Healthineers
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By analyzing existing cross correlation between DAX Index and Siemens Healthineers AG, you can compare the effects of market volatilities on DAX Index and Siemens Healthineers 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 DAX Index with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Siemens Healthineers.
Diversification Opportunities for DAX Index and Siemens Healthineers
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Siemens is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and DAX Index 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 DAX Index are associated (or correlated) with Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of DAX Index i.e., DAX Index and Siemens Healthineers go up and down completely randomly.
Pair Corralation between DAX Index and Siemens Healthineers
Assuming the 90 days trading horizon DAX Index is expected to generate 0.53 times more return on investment than Siemens Healthineers. However, DAX Index is 1.9 times less risky than Siemens Healthineers. It trades about 0.08 of its potential returns per unit of risk. Siemens Healthineers AG is currently generating about 0.01 per unit of risk. If you would invest 1,438,336 in DAX Index on September 28, 2024 and sell it today you would earn a total of 560,096 from holding DAX Index or generate 38.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Siemens Healthineers AG
Performance |
| Timeline |
DAX Index and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Siemens Healthineers AG
Pair trading matchups for Siemens Healthineers
Pair Trading with DAX Index and Siemens Healthineers
The main advantage of trading using opposite DAX Index and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Siemens Healthineers 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 Healthineers will offset losses from the drop in Siemens Healthineers' long position.| DAX Index vs. TEXAS ROADHOUSE | DAX Index vs. Jacquet Metal Service | DAX Index vs. Broadwind | DAX Index vs. Liberty Broadband |
| Siemens Healthineers vs. WuXi AppTec Co | Siemens Healthineers vs. Danaher | Siemens Healthineers vs. Danaher | Siemens Healthineers vs. SIEMENS HEALTH ADR050 |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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