Correlation Between JE Cleantech and Siemens AG
Can any of the company-specific risk be diversified away by investing in both JE Cleantech 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 JE Cleantech and Siemens AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JE Cleantech Holdings and Siemens AG Class, you can compare the effects of market volatilities on JE Cleantech 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 JE Cleantech with a short position of Siemens AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of JE Cleantech and Siemens AG.
Diversification Opportunities for JE Cleantech and Siemens AG
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between JCSE and Siemens is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding JE Cleantech Holdings 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 JE Cleantech 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 JE Cleantech Holdings 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 JE Cleantech i.e., JE Cleantech and Siemens AG go up and down completely randomly.
Pair Corralation between JE Cleantech and Siemens AG
Given the investment horizon of 90 days JE Cleantech Holdings is expected to generate 5.02 times more return on investment than Siemens AG. However, JE Cleantech is 5.02 times more volatile than Siemens AG Class. It trades about 0.02 of its potential returns per unit of risk. Siemens AG Class is currently generating about 0.05 per unit of risk. If you would invest 315.00 in JE Cleantech Holdings on August 28, 2024 and sell it today you would lose (203.00) from holding JE Cleantech Holdings or give up 64.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
JE Cleantech Holdings vs. Siemens AG Class
Performance |
| Timeline |
| JE Cleantech Holdings |
| Siemens AG Class |
JE Cleantech and Siemens AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JE Cleantech and Siemens AG
The main advantage of trading using opposite JE Cleantech and Siemens AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JE Cleantech 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.| JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial Corp |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |