Correlation Between Greenland Acquisition and Siemens AG
Can any of the company-specific risk be diversified away by investing in both Greenland Acquisition 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 Greenland Acquisition and Siemens AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenland Acquisition Corp and Siemens AG Class, you can compare the effects of market volatilities on Greenland Acquisition 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 Greenland Acquisition with a short position of Siemens AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenland Acquisition and Siemens AG.
Diversification Opportunities for Greenland Acquisition and Siemens AG
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Greenland and Siemens is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Greenland Acquisition Corp and Siemens AG Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens AG Class and Greenland Acquisition 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 Greenland Acquisition Corp 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 Class has no effect on the direction of Greenland Acquisition i.e., Greenland Acquisition and Siemens AG go up and down completely randomly.
Pair Corralation between Greenland Acquisition and Siemens AG
Given the investment horizon of 90 days Greenland Acquisition Corp is expected to generate 3.49 times more return on investment than Siemens AG. However, Greenland Acquisition is 3.49 times more volatile than Siemens AG Class. It trades about 0.04 of its potential returns per unit of risk. Siemens AG Class is currently generating about 0.03 per unit of risk. If you would invest 173.00 in Greenland Acquisition Corp on August 31, 2024 and sell it today you would earn a total of 45.00 from holding Greenland Acquisition Corp or generate 26.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenland Acquisition Corp vs. Siemens AG Class
Performance |
| Timeline |
| Greenland Acquisition |
| Siemens AG Class |
Greenland Acquisition and Siemens AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenland Acquisition and Siemens AG
The main advantage of trading using opposite Greenland Acquisition and Siemens AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenland Acquisition 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.| Greenland Acquisition vs. Shapeways Holdings, Common | Greenland Acquisition vs. JE Cleantech Holdings | Greenland Acquisition vs. Laser Photonics | Greenland Acquisition vs. Siemens AG Class |
| Siemens AG vs. Shapeways Holdings, Common | Siemens AG vs. JE Cleantech Holdings | Siemens AG vs. Greenland Acquisition Corp | Siemens AG vs. Laser Photonics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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