Correlation Between GRIFFIN MINING and Siemens Energy
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING and Siemens Energy 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 GRIFFIN MINING and Siemens Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRIFFIN MINING LTD and Siemens Energy AG, you can compare the effects of market volatilities on GRIFFIN MINING and Siemens Energy 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 GRIFFIN MINING with a short position of Siemens Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and Siemens Energy.
Diversification Opportunities for GRIFFIN MINING and Siemens Energy
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between GRIFFIN and Siemens is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and Siemens Energy AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Energy AG and GRIFFIN MINING 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 GRIFFIN MINING LTD are associated (or correlated) with Siemens Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Energy AG has no effect on the direction of GRIFFIN MINING i.e., GRIFFIN MINING and Siemens Energy go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and Siemens Energy
Assuming the 90 days horizon GRIFFIN MINING is expected to generate 1.9 times less return on investment than Siemens Energy. But when comparing it to its historical volatility, GRIFFIN MINING LTD is 1.69 times less risky than Siemens Energy. It trades about 0.07 of its potential returns per unit of risk. Siemens Energy AG is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,884 in Siemens Energy AG on October 15, 2024 and sell it today you would earn a total of 3,066 from holding Siemens Energy AG or generate 162.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. Siemens Energy AG
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| Siemens Energy AG |
GRIFFIN MINING and Siemens Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and Siemens Energy
The main advantage of trading using opposite GRIFFIN MINING and Siemens Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING position performs unexpectedly, Siemens Energy 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 Energy will offset losses from the drop in Siemens Energy's long position.| GRIFFIN MINING vs. INTERSHOP Communications Aktiengesellschaft | GRIFFIN MINING vs. Iridium Communications | GRIFFIN MINING vs. Cairo Communication SpA | GRIFFIN MINING vs. Harmony Gold Mining |
| Siemens Energy vs. PTT Global Chemical | Siemens Energy vs. GRIFFIN MINING LTD | Siemens Energy vs. ADRIATIC METALS LS 013355 | Siemens Energy vs. Sekisui Chemical Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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