Correlation Between HEXINDO ADIPERKASA and Siemens Energy
Can any of the company-specific risk be diversified away by investing in both HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA and Siemens Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEXINDO ADIPERKASA and Siemens Energy AG, you can compare the effects of market volatilities on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA with a short position of Siemens Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEXINDO ADIPERKASA and Siemens Energy.
Diversification Opportunities for HEXINDO ADIPERKASA and Siemens Energy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HEXINDO and Siemens is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA i.e., HEXINDO ADIPERKASA and Siemens Energy go up and down completely randomly.
Pair Corralation between HEXINDO ADIPERKASA and Siemens Energy
Assuming the 90 days trading horizon HEXINDO ADIPERKASA is expected to under-perform the Siemens Energy. But the stock apears to be less risky and, when comparing its historical volatility, HEXINDO ADIPERKASA is 1.75 times less risky than Siemens Energy. The stock trades about -0.51 of its potential returns per unit of risk. The Siemens Energy AG is currently generating about 0.61 of returns per unit of risk over similar time horizon. If you would invest 3,754 in Siemens Energy AG on September 1, 2024 and sell it today you would earn a total of 1,354 from holding Siemens Energy AG or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEXINDO ADIPERKASA vs. Siemens Energy AG
Performance |
| Timeline |
| HEXINDO ADIPERKASA |
| Siemens Energy AG |
HEXINDO ADIPERKASA and Siemens Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEXINDO ADIPERKASA and Siemens Energy
The main advantage of trading using opposite HEXINDO ADIPERKASA and Siemens Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEXINDO ADIPERKASA 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.| HEXINDO ADIPERKASA vs. GameStop Corp | HEXINDO ADIPERKASA vs. Cardinal Health | HEXINDO ADIPERKASA vs. TROPHY GAMES DEV | HEXINDO ADIPERKASA vs. Sabra Health Care |
| Siemens Energy vs. CENTRICA ADR NEW | Siemens Energy vs. TransAlta | Siemens Energy vs. Superior Plus Corp | Siemens Energy vs. NMI Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |