Correlation Between Vestas Wind and SIEMENS AG
Specify exactly 2 symbols:
By analyzing existing cross correlation between Vestas Wind Systems and SIEMENS AG SP, you can compare the effects of market volatilities on Vestas Wind and SIEMENS AG 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 Vestas Wind with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestas Wind and SIEMENS AG.
Diversification Opportunities for Vestas Wind and SIEMENS AG
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vestas and SIEMENS is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Vestas Wind Systems and SIEMENS AG SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEMENS AG SP and Vestas Wind 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 Vestas Wind Systems are associated (or correlated) with SIEMENS AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEMENS AG SP has no effect on the direction of Vestas Wind i.e., Vestas Wind and SIEMENS AG go up and down completely randomly.
Pair Corralation between Vestas Wind and SIEMENS AG
Assuming the 90 days trading horizon Vestas Wind Systems is expected to under-perform the SIEMENS AG. In addition to that, Vestas Wind is 1.26 times more volatile than SIEMENS AG SP. It trades about -0.04 of its total potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.15 per unit of volatility. If you would invest 9,150 in SIEMENS AG SP on September 12, 2024 and sell it today you would earn a total of 750.00 from holding SIEMENS AG SP or generate 8.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestas Wind Systems vs. SIEMENS AG SP
Performance |
| Timeline |
| Vestas Wind Systems |
| SIEMENS AG SP |
Vestas Wind and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestas Wind and SIEMENS AG
The main advantage of trading using opposite Vestas Wind and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestas Wind position performs unexpectedly, SIEMENS AG 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 AG will offset losses from the drop in SIEMENS AG's long position.| Vestas Wind vs. FIREWEED METALS P | Vestas Wind vs. ARDAGH METAL PACDL 0001 | Vestas Wind vs. Kaiser Aluminum | Vestas Wind vs. Jacquet Metal Service |
| SIEMENS AG vs. Brockhaus Capital Management | SIEMENS AG vs. Coor Service Management | SIEMENS AG vs. Jupiter Fund Management | SIEMENS AG vs. Harmony Gold Mining |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |