Correlation Between Siemens AG and Reelcause
Can any of the company-specific risk be diversified away by investing in both Siemens AG and Reelcause 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 AG and Reelcause into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens AG Class and Reelcause, you can compare the effects of market volatilities on Siemens AG and Reelcause 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 AG with a short position of Reelcause. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens AG and Reelcause.
Diversification Opportunities for Siemens AG and Reelcause
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siemens and Reelcause is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Siemens AG Class and Reelcause in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reelcause and Siemens AG 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 AG Class are associated (or correlated) with Reelcause. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reelcause has no effect on the direction of Siemens AG i.e., Siemens AG and Reelcause go up and down completely randomly.
Pair Corralation between Siemens AG and Reelcause
Assuming the 90 days horizon Siemens AG Class is expected to generate 0.06 times more return on investment than Reelcause. However, Siemens AG Class is 16.03 times less risky than Reelcause. It trades about 0.04 of its potential returns per unit of risk. Reelcause is currently generating about -0.22 per unit of risk. If you would invest 18,789 in Siemens AG Class on February 4, 2024 and sell it today you would earn a total of 211.40 from holding Siemens AG Class or generate 1.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.65% |
Values | Daily Returns |
Siemens AG Class vs. Reelcause
Performance |
Timeline |
Siemens AG Class |
Reelcause |
Siemens AG and Reelcause Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siemens AG and Reelcause
The main advantage of trading using opposite Siemens AG and Reelcause positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens AG position performs unexpectedly, Reelcause 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 Reelcause will offset losses from the drop in Reelcause's long position.Siemens AG vs. Cummins | Siemens AG vs. Chart Industries | Siemens AG vs. Nuscale Power Corp | Siemens AG vs. GE Aerospace |
Reelcause vs. Gannett Co | Reelcause vs. Dallasnews Corp | Reelcause vs. Scholastic | Reelcause vs. Pearson PLC ADR |
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
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
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 | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |