Correlation Between Platinum Investment and Siemens Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Platinum Investment and Siemens Aktiengesellscha 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 Platinum Investment and Siemens Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Investment Management and Siemens Aktiengesellschaft, you can compare the effects of market volatilities on Platinum Investment and Siemens Aktiengesellscha 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 Platinum Investment with a short position of Siemens Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and Siemens Aktiengesellscha.
Diversification Opportunities for Platinum Investment and Siemens Aktiengesellscha
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Platinum and Siemens is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and Siemens Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Aktiengesellscha and Platinum Investment 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 Platinum Investment Management are associated (or correlated) with Siemens Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Aktiengesellscha has no effect on the direction of Platinum Investment i.e., Platinum Investment and Siemens Aktiengesellscha go up and down completely randomly.
Pair Corralation between Platinum Investment and Siemens Aktiengesellscha
Assuming the 90 days horizon Platinum Investment is expected to generate 3.35 times less return on investment than Siemens Aktiengesellscha. In addition to that, Platinum Investment is 1.9 times more volatile than Siemens Aktiengesellschaft. It trades about 0.01 of its total potential returns per unit of risk. Siemens Aktiengesellschaft is currently generating about 0.05 per unit of volatility. If you would invest 15,792 in Siemens Aktiengesellschaft on September 3, 2024 and sell it today you would earn a total of 3,020 from holding Siemens Aktiengesellschaft or generate 19.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Platinum Investment Management vs. Siemens Aktiengesellschaft
Performance |
| Timeline |
| Platinum Investment |
| Siemens Aktiengesellscha |
Platinum Investment and Siemens Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and Siemens Aktiengesellscha
The main advantage of trading using opposite Platinum Investment and Siemens Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment position performs unexpectedly, Siemens Aktiengesellscha 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 Aktiengesellscha will offset losses from the drop in Siemens Aktiengesellscha's long position.| Platinum Investment vs. GungHo Online Entertainment | Platinum Investment vs. BOS BETTER ONLINE | Platinum Investment vs. Cars Inc | Platinum Investment vs. Commercial Vehicle Group |
| Siemens Aktiengesellscha vs. BOSTON BEER A | Siemens Aktiengesellscha vs. GigaMedia | Siemens Aktiengesellscha vs. THAI BEVERAGE | Siemens Aktiengesellscha vs. Ultra Clean 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |