Correlation Between Siemens Healthineers and BrainsWay
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and BrainsWay 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 BrainsWay 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 BrainsWay, you can compare the effects of market volatilities on Siemens Healthineers and BrainsWay 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 BrainsWay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and BrainsWay.
Diversification Opportunities for Siemens Healthineers and BrainsWay
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siemens and BrainsWay is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and BrainsWay in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BrainsWay 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 BrainsWay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BrainsWay has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and BrainsWay go up and down completely randomly.
Pair Corralation between Siemens Healthineers and BrainsWay
If you would invest 315.00 in BrainsWay on August 26, 2024 and sell it today you would earn a total of 0.00 from holding BrainsWay or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Healthineers AG vs. BrainsWay
Performance |
| Timeline |
| Siemens Healthineers |
| BrainsWay |
Siemens Healthineers and BrainsWay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and BrainsWay
The main advantage of trading using opposite Siemens Healthineers and BrainsWay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, BrainsWay 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 BrainsWay will offset losses from the drop in BrainsWay's long position.| Siemens Healthineers vs. Bone Biologics Corp | Siemens Healthineers vs. BICO Group AB | Siemens Healthineers vs. Tenon Medical |
| BrainsWay vs. Brainsway | BrainsWay vs. Bluejay Diagnostics | BrainsWay vs. Venus Concept | BrainsWay vs. Icecure 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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