Correlation Between Siemens Healthineers and Tivic Health
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and Tivic Health 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 Tivic Health 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 Tivic Health Systems, you can compare the effects of market volatilities on Siemens Healthineers and Tivic Health 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 Tivic Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and Tivic Health.
Diversification Opportunities for Siemens Healthineers and Tivic Health
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siemens and Tivic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and Tivic Health Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tivic Health Systems 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 Tivic Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tivic Health Systems has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and Tivic Health go up and down completely randomly.
Pair Corralation between Siemens Healthineers and Tivic Health
Assuming the 90 days horizon Siemens Healthineers AG is expected to under-perform the Tivic Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, Siemens Healthineers AG is 7.97 times less risky than Tivic Health. The pink sheet trades about -0.16 of its potential returns per unit of risk. The Tivic Health Systems is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Tivic Health Systems on August 26, 2024 and sell it today you would lose (6.00) from holding Tivic Health Systems or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Healthineers AG vs. Tivic Health Systems
Performance |
| Timeline |
| Siemens Healthineers |
| Tivic Health Systems |
Siemens Healthineers and Tivic Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Healthineers and Tivic Health
The main advantage of trading using opposite Siemens Healthineers and Tivic Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, Tivic Health 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 Tivic Health will offset losses from the drop in Tivic Health's long position.| Siemens Healthineers vs. Merck KGaA ADR | Siemens Healthineers vs. CSL | Siemens Healthineers vs. Essilor International SA | Siemens Healthineers vs. Hoya Corp |
| Tivic Health vs. Bluejay Diagnostics | Tivic Health vs. Heart Test Laboratories | Tivic Health vs. Nuwellis | Tivic Health vs. Bone Biologics 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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