Correlation Between Ballard Power and Siemens Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Ballard Power 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 Ballard Power and Siemens Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ballard Power Systems and Siemens Aktiengesellschaft, you can compare the effects of market volatilities on Ballard Power 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 Ballard Power with a short position of Siemens Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ballard Power and Siemens Aktiengesellscha.
Diversification Opportunities for Ballard Power and Siemens Aktiengesellscha
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ballard and Siemens is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ballard Power Systems and Siemens Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Aktiengesellscha and Ballard Power 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 Ballard Power Systems 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 Ballard Power i.e., Ballard Power and Siemens Aktiengesellscha go up and down completely randomly.
Pair Corralation between Ballard Power and Siemens Aktiengesellscha
Assuming the 90 days horizon Ballard Power Systems is expected to under-perform the Siemens Aktiengesellscha. In addition to that, Ballard Power is 2.62 times more volatile than Siemens Aktiengesellschaft. It trades about -0.06 of its total potential returns per unit of risk. Siemens Aktiengesellschaft is currently generating about 0.07 per unit of volatility. If you would invest 17,649 in Siemens Aktiengesellschaft on December 4, 2024 and sell it today you would earn a total of 4,946 from holding Siemens Aktiengesellschaft or generate 28.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ballard Power Systems vs. Siemens Aktiengesellschaft
Performance |
| Timeline |
| Ballard Power Systems |
| Siemens Aktiengesellscha |
Ballard Power and Siemens Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ballard Power and Siemens Aktiengesellscha
The main advantage of trading using opposite Ballard Power and Siemens Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ballard Power 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.| Ballard Power vs. Powercell Sweden | Ballard Power vs. Nel ASA | Ballard Power vs. ITM Power Plc | Ballard Power vs. Plug Power |
| Siemens Aktiengesellscha vs. Japan Tobacco | Siemens Aktiengesellscha vs. JIAHUA STORES | Siemens Aktiengesellscha vs. China Telecom | Siemens Aktiengesellscha vs. BRIT AMER TOBACCO |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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