Correlation Between Siltronic and PPL
Can any of the company-specific risk be diversified away by investing in both Siltronic and PPL 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 PPL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siltronic AG and PPL Corporation, you can compare the effects of market volatilities on Siltronic and PPL 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 PPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siltronic and PPL.
Diversification Opportunities for Siltronic and PPL
Poor diversification
The 3 months correlation between Siltronic and PPL is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Siltronic AG and PPL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPL Corporation 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 PPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPL Corporation has no effect on the direction of Siltronic i.e., Siltronic and PPL go up and down completely randomly.
Pair Corralation between Siltronic and PPL
Assuming the 90 days horizon Siltronic AG is expected to generate 3.03 times more return on investment than PPL. However, Siltronic is 3.03 times more volatile than PPL Corporation. It trades about 0.14 of its potential returns per unit of risk. PPL Corporation is currently generating about 0.0 per unit of risk. If you would invest 4,900 in Siltronic AG on August 25, 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 Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siltronic AG vs. PPL Corp.
Performance |
| Timeline |
| Siltronic AG |
| PPL Corporation |
Siltronic and PPL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siltronic and PPL
The main advantage of trading using opposite Siltronic and PPL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siltronic position performs unexpectedly, PPL 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 PPL will offset losses from the drop in PPL's long position.| Siltronic vs. Soitec SA ADR | Siltronic vs. Silex Systems Limited | Siltronic vs. Soitec SA | Siltronic vs. Oxford Instruments plc |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |