Correlation Between Siemens Healthineers and TT Electronics
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and TT Electronics 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 TT Electronics 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 TT Electronics PLC, you can compare the effects of market volatilities on Siemens Healthineers and TT Electronics 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 TT Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and TT Electronics.
Diversification Opportunities for Siemens Healthineers and TT Electronics
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siemens and 7TT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and TT Electronics PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TT Electronics PLC 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 TT Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TT Electronics PLC has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and TT Electronics go up and down completely randomly.
Pair Corralation between Siemens Healthineers and TT Electronics
Assuming the 90 days horizon Siemens Healthineers AG is expected to generate 0.51 times more return on investment than TT Electronics. However, Siemens Healthineers AG is 1.97 times less risky than TT Electronics. It trades about 0.02 of its potential returns per unit of risk. TT Electronics PLC is currently generating about -0.02 per unit of risk. If you would invest 4,710 in Siemens Healthineers AG on October 16, 2024 and sell it today you would earn a total of 426.00 from holding Siemens Healthineers AG or generate 9.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Healthineers AG vs. TT Electronics PLC
Performance |
| Timeline |
| Siemens Healthineers |
| TT Electronics PLC |
Siemens Healthineers and TT Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and TT Electronics
The main advantage of trading using opposite Siemens Healthineers and TT Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, TT Electronics 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 TT Electronics will offset losses from the drop in TT Electronics' long position.| Siemens Healthineers vs. TT Electronics PLC | Siemens Healthineers vs. Samsung Electronics Co | Siemens Healthineers vs. JLF INVESTMENT | Siemens Healthineers vs. STMICROELECTRONICS |
| TT Electronics vs. Nippon Light Metal | TT Electronics vs. SIERRA METALS | TT Electronics vs. Scientific Games | TT Electronics vs. AEON METALS LTD |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |