Correlation Between Siemens Healthineers and Icad
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and Icad 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 Healthineers and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Healthineers AG and icad inc, you can compare the effects of market volatilities on Siemens Healthineers and Icad 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 Healthineers with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and Icad.
Diversification Opportunities for Siemens Healthineers and Icad
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siemens and Icad is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Siemens Healthineers 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 Healthineers AG are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and Icad go up and down completely randomly.
Pair Corralation between Siemens Healthineers and Icad
Assuming the 90 days horizon Siemens Healthineers is expected to generate 8.21 times less return on investment than Icad. But when comparing it to its historical volatility, Siemens Healthineers AG is 3.97 times less risky than Icad. It trades about 0.02 of its potential returns per unit of risk. icad inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 165.00 in icad inc on August 30, 2024 and sell it today you would earn a total of 12.00 from holding icad inc or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Healthineers AG vs. icad inc
Performance |
| Timeline |
| Siemens Healthineers |
| icad inc |
Siemens Healthineers and Icad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and Icad
The main advantage of trading using opposite Siemens Healthineers and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.| Siemens Healthineers vs. Brainsway | Siemens Healthineers vs. Bluejay Diagnostics | Siemens Healthineers vs. Venus Concept | Siemens Healthineers vs. Icecure Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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