Correlation Between Siemens Healthineers and FIREWEED METALS
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and FIREWEED METALS 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 FIREWEED METALS 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 FIREWEED METALS P, you can compare the effects of market volatilities on Siemens Healthineers and FIREWEED METALS 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 FIREWEED METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and FIREWEED METALS.
Diversification Opportunities for Siemens Healthineers and FIREWEED METALS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siemens and FIREWEED is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and FIREWEED METALS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIREWEED METALS P 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 FIREWEED METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIREWEED METALS P has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and FIREWEED METALS go up and down completely randomly.
Pair Corralation between Siemens Healthineers and FIREWEED METALS
Assuming the 90 days horizon Siemens Healthineers is expected to generate 2.95 times less return on investment than FIREWEED METALS. But when comparing it to its historical volatility, Siemens Healthineers AG is 2.28 times less risky than FIREWEED METALS. It trades about 0.06 of its potential returns per unit of risk. FIREWEED METALS P is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 90.00 in FIREWEED METALS P on November 7, 2024 and sell it today you would earn a total of 9.00 from holding FIREWEED METALS P or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Healthineers AG vs. FIREWEED METALS P
Performance |
| Timeline |
| Siemens Healthineers |
| FIREWEED METALS P |
Siemens Healthineers and FIREWEED METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and FIREWEED METALS
The main advantage of trading using opposite Siemens Healthineers and FIREWEED METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, FIREWEED METALS 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 FIREWEED METALS will offset losses from the drop in FIREWEED METALS's long position.| Siemens Healthineers vs. SILICON LABORATOR | Siemens Healthineers vs. Mitsui Chemicals | Siemens Healthineers vs. SIEM OFFSHORE NEW | Siemens Healthineers vs. BW OFFSHORE LTD |
| FIREWEED METALS vs. Nok Airlines PCL | FIREWEED METALS vs. Keck Seng Investments | FIREWEED METALS vs. SEI INVESTMENTS | FIREWEED METALS vs. Scottish Mortgage Investment |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings 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 | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |