Correlation Between Siemens Healthineers and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and Integer Holdings 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 Integer Holdings 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 Integer Holdings Corp, you can compare the effects of market volatilities on Siemens Healthineers and Integer Holdings 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 Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and Integer Holdings.
Diversification Opportunities for Siemens Healthineers and Integer Holdings
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siemens and Integer is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and Integer Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integer Holdings Corp 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 Integer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integer Holdings Corp has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and Integer Holdings go up and down completely randomly.
Pair Corralation between Siemens Healthineers and Integer Holdings
Assuming the 90 days horizon Siemens Healthineers is expected to generate 8.12 times less return on investment than Integer Holdings. But when comparing it to its historical volatility, Siemens Healthineers AG is 1.23 times less risky than Integer Holdings. It trades about 0.01 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 7,091 in Integer Holdings Corp on September 3, 2024 and sell it today you would earn a total of 6,959 from holding Integer Holdings Corp or generate 98.14% 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. Integer Holdings Corp
Performance |
| Timeline |
| Siemens Healthineers |
| Integer Holdings Corp |
Siemens Healthineers and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and Integer Holdings
The main advantage of trading using opposite Siemens Healthineers and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, Integer Holdings 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 Integer Holdings will offset losses from the drop in Integer Holdings' long position.| Siemens Healthineers vs. Merck KGaA ADR | Siemens Healthineers vs. CSL | Siemens Healthineers vs. Essilor International SA | Siemens Healthineers vs. Hoya Corp |
| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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