Correlation Between Siemens Aktiengesellscha and HELIOS TECHS
Can any of the company-specific risk be diversified away by investing in both Siemens Aktiengesellscha and HELIOS TECHS 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 Aktiengesellscha and HELIOS TECHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Aktiengesellschaft and HELIOS TECHS INC, you can compare the effects of market volatilities on Siemens Aktiengesellscha and HELIOS TECHS 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 Aktiengesellscha with a short position of HELIOS TECHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Aktiengesellscha and HELIOS TECHS.
Diversification Opportunities for Siemens Aktiengesellscha and HELIOS TECHS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siemens and HELIOS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Aktiengesellschaft and HELIOS TECHS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HELIOS TECHS INC and Siemens Aktiengesellscha 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 Aktiengesellschaft are associated (or correlated) with HELIOS TECHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HELIOS TECHS INC has no effect on the direction of Siemens Aktiengesellscha i.e., Siemens Aktiengesellscha and HELIOS TECHS go up and down completely randomly.
Pair Corralation between Siemens Aktiengesellscha and HELIOS TECHS
Assuming the 90 days horizon Siemens Aktiengesellschaft is expected to generate 0.55 times more return on investment than HELIOS TECHS. However, Siemens Aktiengesellschaft is 1.83 times less risky than HELIOS TECHS. It trades about 0.06 of its potential returns per unit of risk. HELIOS TECHS INC is currently generating about -0.01 per unit of risk. If you would invest 14,482 in Siemens Aktiengesellschaft on November 6, 2024 and sell it today you would earn a total of 6,078 from holding Siemens Aktiengesellschaft or generate 41.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Aktiengesellschaft vs. HELIOS TECHS INC
Performance |
| Timeline |
| Siemens Aktiengesellscha |
| HELIOS TECHS INC |
Siemens Aktiengesellscha and HELIOS TECHS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Aktiengesellscha and HELIOS TECHS
The main advantage of trading using opposite Siemens Aktiengesellscha and HELIOS TECHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Aktiengesellscha position performs unexpectedly, HELIOS TECHS 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 HELIOS TECHS will offset losses from the drop in HELIOS TECHS's long position.| Siemens Aktiengesellscha vs. NTT DATA | Siemens Aktiengesellscha vs. ITALIAN WINE BRANDS | Siemens Aktiengesellscha vs. NORTHEAST UTILITIES | Siemens Aktiengesellscha vs. United Utilities Group |
| HELIOS TECHS vs. FLOW TRADERS LTD | HELIOS TECHS vs. SALESFORCE INC CDR | HELIOS TECHS vs. Canadian Utilities Limited | HELIOS TECHS vs. Tradegate AG Wertpapierhandelsbank |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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