Correlation Between Siemens Healthineers and COMPUTERSHARE
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and COMPUTERSHARE 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 COMPUTERSHARE 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 COMPUTERSHARE, you can compare the effects of market volatilities on Siemens Healthineers and COMPUTERSHARE 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 COMPUTERSHARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and COMPUTERSHARE.
Diversification Opportunities for Siemens Healthineers and COMPUTERSHARE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siemens and COMPUTERSHARE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and COMPUTERSHARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMPUTERSHARE 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 COMPUTERSHARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMPUTERSHARE has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and COMPUTERSHARE go up and down completely randomly.
Pair Corralation between Siemens Healthineers and COMPUTERSHARE
Assuming the 90 days horizon Siemens Healthineers is expected to generate 3.88 times less return on investment than COMPUTERSHARE. But when comparing it to its historical volatility, Siemens Healthineers AG is 1.67 times less risky than COMPUTERSHARE. It trades about 0.09 of its potential returns per unit of risk. COMPUTERSHARE is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,840 in COMPUTERSHARE on October 17, 2024 and sell it today you would earn a total of 240.00 from holding COMPUTERSHARE or generate 13.04% 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. COMPUTERSHARE
Performance |
| Timeline |
| Siemens Healthineers |
| COMPUTERSHARE |
Siemens Healthineers and COMPUTERSHARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and COMPUTERSHARE
The main advantage of trading using opposite Siemens Healthineers and COMPUTERSHARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, COMPUTERSHARE 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 COMPUTERSHARE will offset losses from the drop in COMPUTERSHARE'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 |
| COMPUTERSHARE vs. Live Nation Entertainment | COMPUTERSHARE vs. HEALTHSTREAM | COMPUTERSHARE vs. ZINC MEDIA GR | COMPUTERSHARE vs. Siemens Healthineers AG |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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