Correlation Between Shapeways Holdings, and Siemens AG

Can any of the company-specific risk be diversified away by investing in both Shapeways Holdings, 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 Shapeways Holdings, and Siemens AG into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Shapeways Holdings, Common and Siemens AG Class, you can compare the effects of market volatilities on Shapeways Holdings, 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 Shapeways Holdings, with a short position of Siemens AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shapeways Holdings, and Siemens AG.

Diversification Opportunities for Shapeways Holdings, and Siemens AG

0.0

Correlation Coefficient

Shapeways Holdings,  Siemens AG

Pay attention - limited upside

The 3 months correlation between Shapeways and Siemens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shapeways Holdings, Common and Siemens AG Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens AG Class and Shapeways Holdings, 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 Shapeways Holdings, Common 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 Class has no effect on the direction of Shapeways Holdings, i.e., Shapeways Holdings, and Siemens AG go up and down completely randomly.

Pair Corralation between Shapeways Holdings, and Siemens AG

If you would invest  19,398  in Siemens AG Class on December 30, 2024 and sell it today you would earn a total of  4,462  from holding Siemens AG Class or generate 23.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Shapeways Holdings, Common  vs.  Siemens AG Class

Shapeways Holdings,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Shapeways Holdings, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Shapeways Holdings, is not utilizing all of its potentials. The newest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Siemens AG Class

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Siemens AG Class are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal basic indicators, Siemens AG reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Shapeways Holdings, and Siemens AG

The main advantage of trading using opposite Shapeways Holdings, and Siemens AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shapeways Holdings, 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.

The idea behind Shapeways Holdings, Common and Siemens AG Class pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.