Correlation Between SIEMENS AG and SALTX TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both SIEMENS AG and SALTX TECHNOLOGY 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 AG and SALTX TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEMENS AG SP and SALTX TECHNOLOGY HLDG, you can compare the effects of market volatilities on SIEMENS AG and SALTX TECHNOLOGY 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 AG with a short position of SALTX TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEMENS AG and SALTX TECHNOLOGY.
Diversification Opportunities for SIEMENS AG and SALTX TECHNOLOGY
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SIEMENS and SALTX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SIEMENS AG SP and SALTX TECHNOLOGY HLDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SALTX TECHNOLOGY HLDG and SIEMENS AG 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 AG SP are associated (or correlated) with SALTX TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SALTX TECHNOLOGY HLDG has no effect on the direction of SIEMENS AG i.e., SIEMENS AG and SALTX TECHNOLOGY go up and down completely randomly.
Pair Corralation between SIEMENS AG and SALTX TECHNOLOGY
Assuming the 90 days trading horizon SIEMENS AG SP is expected to generate 0.52 times more return on investment than SALTX TECHNOLOGY. However, SIEMENS AG SP is 1.92 times less risky than SALTX TECHNOLOGY. It trades about 0.16 of its potential returns per unit of risk. SALTX TECHNOLOGY HLDG is currently generating about -0.15 per unit of risk. If you would invest 8,800 in SIEMENS AG SP on September 28, 2024 and sell it today you would earn a total of 550.00 from holding SIEMENS AG SP or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIEMENS AG SP vs. SALTX TECHNOLOGY HLDG
Performance |
| Timeline |
| SIEMENS AG SP |
| SALTX TECHNOLOGY HLDG |
SIEMENS AG and SALTX TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIEMENS AG and SALTX TECHNOLOGY
The main advantage of trading using opposite SIEMENS AG and SALTX TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEMENS AG position performs unexpectedly, SALTX TECHNOLOGY 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 SALTX TECHNOLOGY will offset losses from the drop in SALTX TECHNOLOGY's long position.| SIEMENS AG vs. Siemens Aktiengesellschaft | SIEMENS AG vs. Schneider Electric SE | SIEMENS AG vs. Atlas Copco A | SIEMENS AG vs. RATIONAL Aktiengesellschaft |
| SALTX TECHNOLOGY vs. Jupiter Fund Management | SALTX TECHNOLOGY vs. Perdoceo Education | SALTX TECHNOLOGY vs. CSSC Offshore Marine | SALTX TECHNOLOGY vs. SIEM OFFSHORE NEW |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |