Correlation Between Siemens AG and Heidelberger Druckmaschinen
Can any of the company-specific risk be diversified away by investing in both Siemens AG and Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens AG Class and Heidelberger Druckmaschinen AG, you can compare the effects of market volatilities on Siemens AG and Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens AG and Heidelberger Druckmaschinen.
Diversification Opportunities for Siemens AG and Heidelberger Druckmaschinen
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siemens and Heidelberger is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Siemens AG Class and Heidelberger Druckmaschinen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heidelberger Druckmaschinen 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 Class are associated (or correlated) with Heidelberger Druckmaschinen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heidelberger Druckmaschinen has no effect on the direction of Siemens AG i.e., Siemens AG and Heidelberger Druckmaschinen go up and down completely randomly.
Pair Corralation between Siemens AG and Heidelberger Druckmaschinen
If you would invest 43.00 in Heidelberger Druckmaschinen AG on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Heidelberger Druckmaschinen AG or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens AG Class vs. Heidelberger Druckmaschinen AG
Performance |
| Timeline |
| Siemens AG Class |
| Heidelberger Druckmaschinen |
Siemens AG and Heidelberger Druckmaschinen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens AG and Heidelberger Druckmaschinen
The main advantage of trading using opposite Siemens AG and Heidelberger Druckmaschinen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens AG position performs unexpectedly, Heidelberger Druckmaschinen 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 Heidelberger Druckmaschinen will offset losses from the drop in Heidelberger Druckmaschinen's long position.| Siemens AG vs. Shapeways Holdings, Common | Siemens AG vs. JE Cleantech Holdings | Siemens AG vs. Greenland Acquisition Corp | Siemens AG vs. Laser Photonics |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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