Correlation Between SIEMENS HEALTH and LION ONE
Can any of the company-specific risk be diversified away by investing in both SIEMENS HEALTH and LION ONE 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 HEALTH and LION ONE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEMENS HEALTH ADR050 and LION ONE METALS, you can compare the effects of market volatilities on SIEMENS HEALTH and LION ONE 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 HEALTH with a short position of LION ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEMENS HEALTH and LION ONE.
Diversification Opportunities for SIEMENS HEALTH and LION ONE
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SIEMENS and LION is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SIEMENS HEALTH ADR050 and LION ONE METALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LION ONE METALS and SIEMENS HEALTH 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 HEALTH ADR050 are associated (or correlated) with LION ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LION ONE METALS has no effect on the direction of SIEMENS HEALTH i.e., SIEMENS HEALTH and LION ONE go up and down completely randomly.
Pair Corralation between SIEMENS HEALTH and LION ONE
Assuming the 90 days trading horizon SIEMENS HEALTH ADR050 is expected to generate 0.43 times more return on investment than LION ONE. However, SIEMENS HEALTH ADR050 is 2.34 times less risky than LION ONE. It trades about 0.14 of its potential returns per unit of risk. LION ONE METALS is currently generating about -0.15 per unit of risk. If you would invest 2,520 in SIEMENS HEALTH ADR050 on September 14, 2024 and sell it today you would earn a total of 140.00 from holding SIEMENS HEALTH ADR050 or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEMENS HEALTH ADR050 vs. LION ONE METALS
Performance |
| Timeline |
| SIEMENS HEALTH ADR050 |
| LION ONE METALS |
SIEMENS HEALTH and LION ONE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEMENS HEALTH and LION ONE
The main advantage of trading using opposite SIEMENS HEALTH and LION ONE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEMENS HEALTH position performs unexpectedly, LION ONE 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 LION ONE will offset losses from the drop in LION ONE's long position.| SIEMENS HEALTH vs. LION ONE METALS | SIEMENS HEALTH vs. G8 EDUCATION | SIEMENS HEALTH vs. IMPERIAL TOBACCO | SIEMENS HEALTH vs. GREENX METALS LTD |
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 Positions Ratings module to 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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |