Correlation Between Siemens Healthineers and Apple
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Siemens Healthineers and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and Apple.
Diversification Opportunities for Siemens Healthineers and Apple
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siemens and Apple is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and Apple go up and down completely randomly.
Pair Corralation between Siemens Healthineers and Apple
Assuming the 90 days horizon Siemens Healthineers is expected to generate 4.18 times less return on investment than Apple. In addition to that, Siemens Healthineers is 1.02 times more volatile than Apple Inc. It trades about 0.02 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.07 per unit of volatility. If you would invest 14,044 in Apple Inc on October 28, 2024 and sell it today you would earn a total of 7,151 from holding Apple Inc or generate 50.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Healthineers AG vs. Apple Inc
Performance |
| Timeline |
| Siemens Healthineers |
| Apple Inc |
Siemens Healthineers and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and Apple
The main advantage of trading using opposite Siemens Healthineers and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Siemens Healthineers vs. PLAYTIKA HOLDING DL 01 | Siemens Healthineers vs. USWE SPORTS AB | Siemens Healthineers vs. PLAY2CHILL SA ZY | Siemens Healthineers vs. InPlay Oil Corp |
| Apple vs. SCANSOURCE | Apple vs. Nok Airlines PCL | Apple vs. GOODYEAR T RUBBER | Apple vs. Mitsubishi Materials |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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