Correlation Between Siemens Healthineers and Artivion
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and Artivion 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 Siemens Healthineers and Artivion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Healthineers AG and Artivion, you can compare the effects of market volatilities on Siemens Healthineers and Artivion 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 Siemens Healthineers with a short position of Artivion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and Artivion.
Diversification Opportunities for Siemens Healthineers and Artivion
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siemens and Artivion is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion and Siemens Healthineers 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 Siemens Healthineers AG are associated (or correlated) with Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and Artivion go up and down completely randomly.
Pair Corralation between Siemens Healthineers and Artivion
Assuming the 90 days horizon Siemens Healthineers is expected to generate 2.22 times less return on investment than Artivion. But when comparing it to its historical volatility, Siemens Healthineers AG is 1.03 times less risky than Artivion. It trades about 0.09 of its potential returns per unit of risk. Artivion is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,746 in Artivion on September 4, 2024 and sell it today you would earn a total of 216.00 from holding Artivion or generate 7.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Siemens Healthineers AG vs. Artivion
Performance |
| Timeline |
| Siemens Healthineers |
| Artivion |
Siemens Healthineers and Artivion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and Artivion
The main advantage of trading using opposite Siemens Healthineers and Artivion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, Artivion 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 Artivion will offset losses from the drop in Artivion's long position.| Siemens Healthineers vs. Artivion | Siemens Healthineers vs. Anika Therapeutics | Siemens Healthineers vs. Sight Sciences | Siemens Healthineers vs. Orthofix Medical |
| Artivion vs. Anika Therapeutics | Artivion vs. Sight Sciences | Artivion vs. Orthofix Medical | Artivion vs. Avanos Medical |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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