Correlation Between Siemens Aktiengesellscha and FANUC PUNSPADR
Can any of the company-specific risk be diversified away by investing in both Siemens Aktiengesellscha and FANUC PUNSPADR 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 FANUC PUNSPADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Aktiengesellschaft and FANUC PUNSPADR 110, you can compare the effects of market volatilities on Siemens Aktiengesellscha and FANUC PUNSPADR 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 FANUC PUNSPADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Aktiengesellscha and FANUC PUNSPADR.
Diversification Opportunities for Siemens Aktiengesellscha and FANUC PUNSPADR
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siemens and FANUC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Aktiengesellschaft and FANUC PUNSPADR 110 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANUC PUNSPADR 110 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 FANUC PUNSPADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANUC PUNSPADR 110 has no effect on the direction of Siemens Aktiengesellscha i.e., Siemens Aktiengesellscha and FANUC PUNSPADR go up and down completely randomly.
Pair Corralation between Siemens Aktiengesellscha and FANUC PUNSPADR
Assuming the 90 days trading horizon Siemens Aktiengesellschaft is expected to generate 0.68 times more return on investment than FANUC PUNSPADR. However, Siemens Aktiengesellschaft is 1.47 times less risky than FANUC PUNSPADR. It trades about 0.13 of its potential returns per unit of risk. FANUC PUNSPADR 110 is currently generating about 0.01 per unit of risk. If you would invest 18,584 in Siemens Aktiengesellschaft on September 12, 2024 and sell it today you would earn a total of 968.00 from holding Siemens Aktiengesellschaft or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Siemens Aktiengesellschaft vs. FANUC PUNSPADR 110
Performance |
| Timeline |
| Siemens Aktiengesellscha |
| FANUC PUNSPADR 110 |
Siemens Aktiengesellscha and FANUC PUNSPADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Aktiengesellscha and FANUC PUNSPADR
The main advantage of trading using opposite Siemens Aktiengesellscha and FANUC PUNSPADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Aktiengesellscha position performs unexpectedly, FANUC PUNSPADR 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 FANUC PUNSPADR will offset losses from the drop in FANUC PUNSPADR's long position.| Siemens Aktiengesellscha vs. MELIA HOTELS | Siemens Aktiengesellscha vs. Harmony Gold Mining | Siemens Aktiengesellscha vs. Choice Hotels International | Siemens Aktiengesellscha vs. PPHE HOTEL GROUP |
| FANUC PUNSPADR vs. SIEMENS AG SP | FANUC PUNSPADR vs. Siemens Aktiengesellschaft | FANUC PUNSPADR vs. Siemens Aktiengesellschaft | FANUC PUNSPADR vs. Schneider Electric SE |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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