Correlation Between GN Store and Siemens Healthineers
Can any of the company-specific risk be diversified away by investing in both GN Store and Siemens Healthineers 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 GN Store and Siemens Healthineers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GN Store Nord and Siemens Healthineers AG, you can compare the effects of market volatilities on GN Store 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 GN Store with a short position of Siemens Healthineers. Check out your portfolio center. Please also check ongoing floating volatility patterns of GN Store and Siemens Healthineers.
Diversification Opportunities for GN Store and Siemens Healthineers
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GNNDY and Siemens is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding GN Store Nord and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and GN Store 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 GN Store Nord 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 GN Store i.e., GN Store and Siemens Healthineers go up and down completely randomly.
Pair Corralation between GN Store and Siemens Healthineers
Assuming the 90 days horizon GN Store Nord is expected to under-perform the Siemens Healthineers. But the pink sheet apears to be less risky and, when comparing its historical volatility, GN Store Nord is 1.0 times less risky than Siemens Healthineers. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Siemens Healthineers AG is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,656 in Siemens Healthineers AG on August 30, 2024 and sell it today you would earn a total of 27.00 from holding Siemens Healthineers AG or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GN Store Nord vs. Siemens Healthineers AG
Performance |
| Timeline |
| GN Store Nord |
| Siemens Healthineers |
GN Store and Siemens Healthineers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GN Store and Siemens Healthineers
The main advantage of trading using opposite GN Store and Siemens Healthineers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GN Store 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.| GN Store vs. Demant AS ADR | GN Store vs. Sonova Holding AG | GN Store vs. GN Store Nord | GN Store vs. Bone Biologics Corp |
| Siemens Healthineers vs. Brainsway | Siemens Healthineers vs. Bluejay Diagnostics | Siemens Healthineers vs. Venus Concept | Siemens Healthineers vs. Icecure Medical |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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