Correlation Between Siemens AG and Nuburu

Can any of the company-specific risk be diversified away by investing in both Siemens AG and Nuburu 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 Nuburu 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 Nuburu Inc, you can compare the effects of market volatilities on Siemens AG and Nuburu 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 Nuburu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens AG and Nuburu.

Diversification Opportunities for Siemens AG and Nuburu

-0.8

Correlation Coefficient

Siemens AG  Nuburu

Pay attention - limited upside

The 3 months correlation between Siemens and Nuburu is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Siemens AG Class and Nuburu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuburu Inc 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 Nuburu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuburu Inc has no effect on the direction of Siemens AG i.e., Siemens AG and Nuburu go up and down completely randomly.

Pair Corralation between Siemens AG and Nuburu

Assuming the 90 days horizon Siemens AG Class is expected to generate 0.21 times more return on investment than Nuburu. However, Siemens AG Class is 4.87 times less risky than Nuburu. It trades about 0.14 of its potential returns per unit of risk. Nuburu Inc is currently generating about -0.12 per unit of risk. If you would invest  19,398  in Siemens AG Class on December 29, 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	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Siemens AG Class  vs.  Nuburu Inc

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.

Nuburu Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuburu Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Siemens AG and Nuburu

The main advantage of trading using opposite Siemens AG and Nuburu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens AG position performs unexpectedly, Nuburu 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 Nuburu will offset losses from the drop in Nuburu's long position.

The idea behind Siemens AG Class and Nuburu Inc 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.