Correlation Between Siltronic and Hello

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Can any of the company-specific risk be diversified away by investing in both Siltronic and Hello 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 Siltronic and Hello into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siltronic AG and Hello Group, you can compare the effects of market volatilities on Siltronic and Hello 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 Siltronic with a short position of Hello. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siltronic and Hello.

Diversification Opportunities for Siltronic and Hello

-0.88
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Siltronic and Hello is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Siltronic AG and Hello Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hello Group and Siltronic 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 Siltronic AG are associated (or correlated) with Hello. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hello Group has no effect on the direction of Siltronic i.e., Siltronic and Hello go up and down completely randomly.

Pair Corralation between Siltronic and Hello

Assuming the 90 days horizon Siltronic AG is expected to generate 1.5 times more return on investment than Hello. However, Siltronic is 1.5 times more volatile than Hello Group. It trades about 0.14 of its potential returns per unit of risk. Hello Group is currently generating about -0.12 per unit of risk. If you would invest  4,900  in Siltronic AG on August 13, 2025 and sell it today you would earn a total of  1,185  from holding Siltronic AG or generate 24.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Siltronic AG  vs.  Hello Group

 Performance 
       Timeline  
Siltronic AG 

Risk-Adjusted Performance

Good

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

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hello Group 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 primary indicators remain very healthy which may send shares a bit higher in December 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Siltronic and Hello Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Siltronic and Hello

The main advantage of trading using opposite Siltronic and Hello positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siltronic position performs unexpectedly, Hello 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 Hello will offset losses from the drop in Hello's long position.
The idea behind Siltronic AG and Hello Group 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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