Correlation Between Scientific Games and Siemens Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Scientific Games and Siemens Aktiengesellscha 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 Scientific Games and Siemens Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and Siemens Aktiengesellschaft, you can compare the effects of market volatilities on Scientific Games and Siemens Aktiengesellscha 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 Scientific Games with a short position of Siemens Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Siemens Aktiengesellscha.
Diversification Opportunities for Scientific Games and Siemens Aktiengesellscha
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scientific and Siemens is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games and Siemens Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Aktiengesellscha and Scientific Games 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 Scientific Games are associated (or correlated) with Siemens Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Aktiengesellscha has no effect on the direction of Scientific Games i.e., Scientific Games and Siemens Aktiengesellscha go up and down completely randomly.
Pair Corralation between Scientific Games and Siemens Aktiengesellscha
Assuming the 90 days horizon Scientific Games is expected to under-perform the Siemens Aktiengesellscha. In addition to that, Scientific Games is 1.63 times more volatile than Siemens Aktiengesellschaft. It trades about -0.05 of its total potential returns per unit of risk. Siemens Aktiengesellschaft is currently generating about 0.12 per unit of volatility. If you would invest 18,538 in Siemens Aktiengesellschaft on September 12, 2024 and sell it today you would earn a total of 774.00 from holding Siemens Aktiengesellschaft or generate 4.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scientific Games vs. Siemens Aktiengesellschaft
Performance |
| Timeline |
| Scientific Games |
| Siemens Aktiengesellscha |
Scientific Games and Siemens Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and Siemens Aktiengesellscha
The main advantage of trading using opposite Scientific Games and Siemens Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games position performs unexpectedly, Siemens Aktiengesellscha 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 Siemens Aktiengesellscha will offset losses from the drop in Siemens Aktiengesellscha's long position.| Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc |
| Siemens Aktiengesellscha vs. GAMESTOP | Siemens Aktiengesellscha vs. Hochschild Mining plc | Siemens Aktiengesellscha vs. International Game Technology | Siemens Aktiengesellscha vs. Scientific Games |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |