Correlation Between Siemens Healthineers and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and CyberArk Software 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 CyberArk Software 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 CyberArk Software, you can compare the effects of market volatilities on Siemens Healthineers and CyberArk Software 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 CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and CyberArk Software.
Diversification Opportunities for Siemens Healthineers and CyberArk Software
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siemens and CyberArk is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software 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 CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and CyberArk Software go up and down completely randomly.
Pair Corralation between Siemens Healthineers and CyberArk Software
Assuming the 90 days horizon Siemens Healthineers is expected to generate 6.99 times less return on investment than CyberArk Software. But when comparing it to its historical volatility, Siemens Healthineers AG is 2.29 times less risky than CyberArk Software. It trades about 0.05 of its potential returns per unit of risk. CyberArk Software is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 28,820 in CyberArk Software on October 16, 2024 and sell it today you would earn a total of 3,930 from holding CyberArk Software or generate 13.64% 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. CyberArk Software
Performance |
| Timeline |
| Siemens Healthineers |
| CyberArk Software |
Siemens Healthineers and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and CyberArk Software
The main advantage of trading using opposite Siemens Healthineers and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, CyberArk Software 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 CyberArk Software will offset losses from the drop in CyberArk Software's long position.| Siemens Healthineers vs. Playa Hotels Resorts | Siemens Healthineers vs. LG Display Co | Siemens Healthineers vs. COLUMBIA SPORTSWEAR | Siemens Healthineers vs. PLAYSTUDIOS A DL 0001 |
| CyberArk Software vs. MPH Health Care | CyberArk Software vs. The Hongkong and | CyberArk Software vs. Siemens Healthineers AG | CyberArk Software vs. MELIA HOTELS |
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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