Correlation Between SIEM OFFSHORE and Highlight Communications
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE and Highlight Communications 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 SIEM OFFSHORE and Highlight Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and Highlight Communications AG, you can compare the effects of market volatilities on SIEM OFFSHORE and Highlight Communications 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 SIEM OFFSHORE with a short position of Highlight Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and Highlight Communications.
Diversification Opportunities for SIEM OFFSHORE and Highlight Communications
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIEM and Highlight is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and Highlight Communications AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highlight Communications and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with Highlight Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highlight Communications has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and Highlight Communications go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and Highlight Communications
Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to generate 0.71 times more return on investment than Highlight Communications. However, SIEM OFFSHORE NEW is 1.41 times less risky than Highlight Communications. It trades about -0.03 of its potential returns per unit of risk. Highlight Communications AG is currently generating about -0.31 per unit of risk. If you would invest 194.00 in SIEM OFFSHORE NEW on December 1, 2024 and sell it today you would lose (6.00) from holding SIEM OFFSHORE NEW or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEM OFFSHORE NEW vs. Highlight Communications AG
Performance |
| Timeline |
| SIEM OFFSHORE NEW |
| Highlight Communications |
SIEM OFFSHORE and Highlight Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEM OFFSHORE and Highlight Communications
The main advantage of trading using opposite SIEM OFFSHORE and Highlight Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE position performs unexpectedly, Highlight Communications 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 Highlight Communications will offset losses from the drop in Highlight Communications' long position.| SIEM OFFSHORE vs. Vienna Insurance Group | SIEM OFFSHORE vs. TRAVEL LEISURE DL 01 | SIEM OFFSHORE vs. The Hanover Insurance | SIEM OFFSHORE vs. InPlay Oil Corp |
| Highlight Communications vs. Q2M Managementberatung AG | Highlight Communications vs. UNIVERSAL DISPLAY | Highlight Communications vs. Playa Hotels Resorts | Highlight Communications vs. PLAYSTUDIOS A DL 0001 |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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