Correlation Between Siemens Healthineers and US Physical
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and US Physical 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 US Physical 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 US Physical Therapy, you can compare the effects of market volatilities on Siemens Healthineers and US Physical 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 US Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and US Physical.
Diversification Opportunities for Siemens Healthineers and US Physical
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siemens and UPH is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and US Physical Therapy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Physical Therapy 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 US Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Physical Therapy has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and US Physical go up and down completely randomly.
Pair Corralation between Siemens Healthineers and US Physical
Assuming the 90 days horizon Siemens Healthineers is expected to generate 2.28 times less return on investment than US Physical. But when comparing it to its historical volatility, Siemens Healthineers AG is 1.96 times less risky than US Physical. It trades about 0.11 of its potential returns per unit of risk. US Physical Therapy is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 7,511 in US Physical Therapy on October 6, 2024 and sell it today you would earn a total of 1,039 from holding US Physical Therapy or generate 13.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Siemens Healthineers AG vs. US Physical Therapy
Performance |
Timeline |
Siemens Healthineers |
US Physical Therapy |
Siemens Healthineers and US Physical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siemens Healthineers and US Physical
The main advantage of trading using opposite Siemens Healthineers and US Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, US Physical 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 US Physical will offset losses from the drop in US Physical's long position.Siemens Healthineers vs. Thermo Fisher Scientific | Siemens Healthineers vs. Danaher | Siemens Healthineers vs. Agilent Technologies |
US Physical vs. Superior Plus Corp | US Physical vs. NMI Holdings | US Physical vs. Origin Agritech | US Physical vs. SIVERS SEMICONDUCTORS AB |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |