Correlation Between Siemens Energy and Hillenbrand
Can any of the company-specific risk be diversified away by investing in both Siemens Energy and Hillenbrand 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 Energy and Hillenbrand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Energy AG and Hillenbrand, you can compare the effects of market volatilities on Siemens Energy and Hillenbrand 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 Energy with a short position of Hillenbrand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Energy and Hillenbrand.
Diversification Opportunities for Siemens Energy and Hillenbrand
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siemens and Hillenbrand is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Energy AG and Hillenbrand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hillenbrand and Siemens Energy 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 Energy AG are associated (or correlated) with Hillenbrand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hillenbrand has no effect on the direction of Siemens Energy i.e., Siemens Energy and Hillenbrand go up and down completely randomly.
Pair Corralation between Siemens Energy and Hillenbrand
Assuming the 90 days horizon Siemens Energy AG is expected to generate 0.79 times more return on investment than Hillenbrand. However, Siemens Energy AG is 1.27 times less risky than Hillenbrand. It trades about 0.42 of its potential returns per unit of risk. Hillenbrand is currently generating about 0.27 per unit of risk. If you would invest 4,110 in Siemens Energy AG on August 27, 2024 and sell it today you would earn a total of 1,208 from holding Siemens Energy AG or generate 29.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Energy AG vs. Hillenbrand
Performance |
| Timeline |
| Siemens Energy AG |
| Hillenbrand |
Siemens Energy and Hillenbrand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Energy and Hillenbrand
The main advantage of trading using opposite Siemens Energy and Hillenbrand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Energy position performs unexpectedly, Hillenbrand 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 Hillenbrand will offset losses from the drop in Hillenbrand's long position.| Siemens Energy vs. Arista Power | Siemens Energy vs. Atlas Copco AB | Siemens Energy vs. American Commerce Solutions |
| Hillenbrand vs. Aquagold International | Hillenbrand vs. Morningstar Unconstrained Allocation | Hillenbrand vs. High Yield Municipal Fund | Hillenbrand vs. Thrivent High Yield |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |