Correlation Between Siemens AG and Nuburu
Can any of the company-specific risk be diversified away by investing in both Siemens AG and Nuburu 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 Nuburu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens AG ADR and Nuburu Inc, you can compare the effects of market volatilities on Siemens AG and Nuburu 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 Nuburu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens AG and Nuburu.
Diversification Opportunities for Siemens AG and Nuburu
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siemens and Nuburu is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Siemens AG ADR and Nuburu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuburu Inc 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 ADR are associated (or correlated) with Nuburu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuburu Inc has no effect on the direction of Siemens AG i.e., Siemens AG and Nuburu go up and down completely randomly.
Pair Corralation between Siemens AG and Nuburu
If you would invest 7,835 in Siemens AG ADR on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Siemens AG ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.25% |
| Values | Daily Returns |
Siemens AG ADR vs. Nuburu Inc
Performance |
| Timeline |
| Siemens AG ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nuburu Inc |
Siemens AG and Nuburu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens AG and Nuburu
The main advantage of trading using opposite Siemens AG and Nuburu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens AG position performs unexpectedly, Nuburu 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 Nuburu will offset losses from the drop in Nuburu's long position.| Siemens AG vs. Sandvik AB | Siemens AG vs. Schneider Electric SA | Siemens AG vs. KONE Oyj | Siemens AG vs. Atlas Copco AB |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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