Correlation Between CODERE ONLINE and SIEM OFFSHORE

Can any of the company-specific risk be diversified away by investing in both CODERE ONLINE and SIEM OFFSHORE 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 CODERE ONLINE and SIEM OFFSHORE into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CODERE ONLINE LUX and SIEM OFFSHORE NEW, you can compare the effects of market volatilities on CODERE ONLINE and SIEM OFFSHORE 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 CODERE ONLINE with a short position of SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of CODERE ONLINE and SIEM OFFSHORE.

Diversification Opportunities for CODERE ONLINE and SIEM OFFSHORE

0.19

Correlation Coefficient

CODERE ONLINE  SIEM OFFSHORE

Average diversification

The 3 months correlation between CODERE and SIEM is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CODERE ONLINE LUX and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW and CODERE ONLINE 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 CODERE ONLINE LUX are associated (or correlated) with SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of CODERE ONLINE i.e., CODERE ONLINE and SIEM OFFSHORE go up and down completely randomly.

Pair Corralation between CODERE ONLINE and SIEM OFFSHORE

Assuming the 90 days horizon CODERE ONLINE is expected to generate 2.64 times less return on investment than SIEM OFFSHORE. But when comparing it to its historical volatility, CODERE ONLINE LUX is 1.3 times less risky than SIEM OFFSHORE. It trades about 0.11 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  145.00  in SIEM OFFSHORE NEW on April 21, 2025 and sell it today you would earn a total of  71.00  from holding SIEM OFFSHORE NEW or generate 48.97% return on investment over 90 days.

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

CODERE ONLINE LUX  vs.  SIEM OFFSHORE NEW

CODERE ONLINE LUX

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CODERE ONLINE LUX are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CODERE ONLINE reported solid returns over the last few months and may actually be approaching a breakup point.

SIEM OFFSHORE NEW

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SIEM OFFSHORE NEW are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical indicators, SIEM OFFSHORE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CODERE ONLINE and SIEM OFFSHORE

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

The idea behind CODERE ONLINE LUX and SIEM OFFSHORE NEW 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.