Correlation Between Siemens Healthineers and ASML HOLDING
Can any of the company-specific risk be diversified away by investing in both Siemens Healthineers and ASML HOLDING 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 ASML HOLDING 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 ASML HOLDING NY, you can compare the effects of market volatilities on Siemens Healthineers and ASML HOLDING 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 ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Healthineers and ASML HOLDING.
Diversification Opportunities for Siemens Healthineers and ASML HOLDING
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siemens and ASML is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Healthineers AG and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY 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 ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of Siemens Healthineers i.e., Siemens Healthineers and ASML HOLDING go up and down completely randomly.
Pair Corralation between Siemens Healthineers and ASML HOLDING
Assuming the 90 days horizon Siemens Healthineers is expected to generate 3.16 times less return on investment than ASML HOLDING. But when comparing it to its historical volatility, Siemens Healthineers AG is 1.99 times less risky than ASML HOLDING. It trades about 0.06 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 55,837 in ASML HOLDING NY on April 20, 2025 and sell it today you would earn a total of 7,763 from holding ASML HOLDING NY or generate 13.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
Siemens Healthineers AG vs. ASML HOLDING NY
Performance |
Timeline |
Siemens Healthineers |
ASML HOLDING NY |
Siemens Healthineers and ASML HOLDING Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siemens Healthineers and ASML HOLDING
The main advantage of trading using opposite Siemens Healthineers and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Healthineers position performs unexpectedly, ASML HOLDING 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 ASML HOLDING will offset losses from the drop in ASML HOLDING's long position.Siemens Healthineers vs. ANGLO ASIAN MINING | Siemens Healthineers vs. ELMOS SEMICONDUCTOR | Siemens Healthineers vs. GOLDQUEST MINING | Siemens Healthineers vs. Yanzhou Coal Mining |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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