Correlation Between Nordex SE and SIEMENS AG
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By analyzing existing cross correlation between Nordex SE and SIEMENS AG SP, you can compare the effects of market volatilities on Nordex SE 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 Nordex SE with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordex SE and SIEMENS AG.
Diversification Opportunities for Nordex SE and SIEMENS AG
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nordex and SIEMENS is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Nordex SE and SIEMENS AG SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS AG SP and Nordex SE 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 Nordex SE 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 SP has no effect on the direction of Nordex SE i.e., Nordex SE and SIEMENS AG go up and down completely randomly.
Pair Corralation between Nordex SE and SIEMENS AG
Assuming the 90 days trading horizon Nordex SE is expected to under-perform the SIEMENS AG. In addition to that, Nordex SE is 1.1 times more volatile than SIEMENS AG SP. It trades about -0.27 of its total potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.06 per unit of volatility. If you would invest 8,900 in SIEMENS AG SP on September 5, 2024 and sell it today you would earn a total of 250.00 from holding SIEMENS AG SP or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nordex SE vs. SIEMENS AG SP
Performance |
| Timeline |
| Nordex SE |
| SIEMENS AG SP |
Nordex SE and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordex SE and SIEMENS AG
The main advantage of trading using opposite Nordex SE and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordex SE 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.| Nordex SE vs. Siemens Aktiengesellschaft | Nordex SE vs. Siemens Aktiengesellschaft | Nordex SE vs. Vestas Wind Systems | Nordex SE vs. Vestas Wind Systems |
| SIEMENS AG vs. Siemens Aktiengesellschaft | SIEMENS AG vs. Siemens Aktiengesellschaft | SIEMENS AG vs. Vestas Wind Systems | SIEMENS AG vs. Vestas Wind Systems |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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