Correlation Between Siemens Healthineers and MICRONIC MYDATA
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and MICRONIC MYDATA 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 MICRONIC MYDATA 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 MICRONIC MYDATA, you can compare the effects of market volatilities on Siemens Healthineers and MICRONIC MYDATA 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 MICRONIC MYDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and MICRONIC MYDATA.
Diversification Opportunities for Siemens Healthineers and MICRONIC MYDATA
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siemens and MICRONIC is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA 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 MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and MICRONIC MYDATA go up and down completely randomly.
Pair Corralation between Siemens Healthineers and MICRONIC MYDATA
Assuming the 90 days horizon Siemens Healthineers AG is expected to under-perform the MICRONIC MYDATA. But the stock apears to be less risky and, when comparing its historical volatility, Siemens Healthineers AG is 1.86 times less risky than MICRONIC MYDATA. The stock trades about -0.15 of its potential returns per unit of risk. The MICRONIC MYDATA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,566 in MICRONIC MYDATA on October 11, 2024 and sell it today you would earn a total of 50.00 from holding MICRONIC MYDATA or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Siemens Healthineers AG vs. MICRONIC MYDATA
Performance |
| Timeline |
| Siemens Healthineers |
| MICRONIC MYDATA |
Siemens Healthineers and MICRONIC MYDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and MICRONIC MYDATA
The main advantage of trading using opposite Siemens Healthineers and MICRONIC MYDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, MICRONIC MYDATA 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 MICRONIC MYDATA will offset losses from the drop in MICRONIC MYDATA's long position.| Siemens Healthineers vs. MOBILE FACTORY INC | Siemens Healthineers vs. SUN LIFE FINANCIAL | Siemens Healthineers vs. Charter Communications | Siemens Healthineers vs. CDN IMPERIAL BANK |
| MICRONIC MYDATA vs. De Grey Mining | MICRONIC MYDATA vs. GREENX METALS LTD | MICRONIC MYDATA vs. VIVA WINE GROUP | MICRONIC MYDATA vs. CARSALESCOM |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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