Correlation Between Siemens Healthineers and MARKET VECTR
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and MARKET VECTR 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 MARKET VECTR 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 MARKET VECTR RETAIL, you can compare the effects of market volatilities on Siemens Healthineers and MARKET VECTR 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 MARKET VECTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and MARKET VECTR.
Diversification Opportunities for Siemens Healthineers and MARKET VECTR
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siemens and MARKET is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and MARKET VECTR RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKET VECTR RETAIL 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 MARKET VECTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKET VECTR RETAIL has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and MARKET VECTR go up and down completely randomly.
Pair Corralation between Siemens Healthineers and MARKET VECTR
Assuming the 90 days horizon Siemens Healthineers is expected to generate 1.03 times less return on investment than MARKET VECTR. In addition to that, Siemens Healthineers is 1.85 times more volatile than MARKET VECTR RETAIL. It trades about 0.21 of its total potential returns per unit of risk. MARKET VECTR RETAIL is currently generating about 0.41 per unit of volatility. If you would invest 21,925 in MARKET VECTR RETAIL on November 7, 2024 and sell it today you would earn a total of 1,215 from holding MARKET VECTR RETAIL or generate 5.54% 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. MARKET VECTR RETAIL
Performance |
| Timeline |
| Siemens Healthineers |
| MARKET VECTR RETAIL |
Siemens Healthineers and MARKET VECTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and MARKET VECTR
The main advantage of trading using opposite Siemens Healthineers and MARKET VECTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, MARKET VECTR 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 MARKET VECTR will offset losses from the drop in MARKET VECTR's long position.| Siemens Healthineers vs. PLANT VEDA FOODS | Siemens Healthineers vs. PREMIER FOODS | Siemens Healthineers vs. MONEYSUPERMARKET | Siemens Healthineers vs. Tyson Foods |
| MARKET VECTR vs. LAir Liquide SA | MARKET VECTR vs. HF SINCLAIR P | MARKET VECTR vs. Corsair Gaming | MARKET VECTR vs. Ryanair Holdings plc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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