Correlation Between ATRESMEDIA and SIEMENS AG
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and SIEMENS AG 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 ATRESMEDIA and SIEMENS AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and SIEMENS AG SP, you can compare the effects of market volatilities on ATRESMEDIA 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 ATRESMEDIA with a short position of SIEMENS AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and SIEMENS AG.
Diversification Opportunities for ATRESMEDIA and SIEMENS AG
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between ATRESMEDIA and SIEMENS is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA i.e., ATRESMEDIA and SIEMENS AG go up and down completely randomly.
Pair Corralation between ATRESMEDIA and SIEMENS AG
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 0.72 times more return on investment than SIEMENS AG. However, ATRESMEDIA is 1.4 times less risky than SIEMENS AG. It trades about 0.08 of its potential returns per unit of risk. SIEMENS AG SP is currently generating about 0.05 per unit of risk. If you would invest 269.00 in ATRESMEDIA on September 2, 2024 and sell it today you would earn a total of 180.00 from holding ATRESMEDIA or generate 66.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. SIEMENS AG SP
Performance |
| Timeline |
| ATRESMEDIA |
| SIEMENS AG SP |
ATRESMEDIA and SIEMENS AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and SIEMENS AG
The main advantage of trading using opposite ATRESMEDIA and SIEMENS AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA 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.| ATRESMEDIA vs. SIVERS SEMICONDUCTORS AB | ATRESMEDIA vs. Darden Restaurants | ATRESMEDIA vs. Reliance Steel Aluminum | ATRESMEDIA vs. Q2M Managementberatung AG |
| SIEMENS AG vs. NURAN WIRELESS INC | SIEMENS AG vs. ATRESMEDIA | SIEMENS AG vs. CNVISION MEDIA | SIEMENS AG vs. CENTURIA OFFICE REIT |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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