Correlation Between Pampa Energía and Siemens Energy
Can any of the company-specific risk be diversified away by investing in both Pampa Energía and Siemens Energy 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 Pampa Energía and Siemens Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pampa Energa SA and Siemens Energy AG, you can compare the effects of market volatilities on Pampa Energía and Siemens Energy 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 Pampa Energía with a short position of Siemens Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pampa Energía and Siemens Energy.
Diversification Opportunities for Pampa Energía and Siemens Energy
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Pampa and Siemens is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Pampa Energa SA and Siemens Energy AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Energy AG and Pampa Energía 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 Pampa Energa SA are associated (or correlated) with Siemens Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Energy AG has no effect on the direction of Pampa Energía i.e., Pampa Energía and Siemens Energy go up and down completely randomly.
Pair Corralation between Pampa Energía and Siemens Energy
Assuming the 90 days trading horizon Pampa Energa SA is expected to generate 1.02 times more return on investment than Siemens Energy. However, Pampa Energía is 1.02 times more volatile than Siemens Energy AG. It trades about 0.6 of its potential returns per unit of risk. Siemens Energy AG is currently generating about 0.61 per unit of risk. If you would invest 6,100 in Pampa Energa SA on September 1, 2024 and sell it today you would earn a total of 2,200 from holding Pampa Energa SA or generate 36.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pampa Energa SA vs. Siemens Energy AG
Performance |
| Timeline |
| Pampa Energa SA |
| Siemens Energy AG |
Pampa Energía and Siemens Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pampa Energía and Siemens Energy
The main advantage of trading using opposite Pampa Energía and Siemens Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pampa Energía position performs unexpectedly, Siemens Energy 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 Siemens Energy will offset losses from the drop in Siemens Energy's long position.| Pampa Energía vs. Singapore Telecommunications Limited | Pampa Energía vs. TROPHY GAMES DEV | Pampa Energía vs. COMBA TELECOM SYST | Pampa Energía vs. FRACTAL GAMING GROUP |
| Siemens Energy vs. CENTRICA ADR NEW | Siemens Energy vs. TransAlta | Siemens Energy vs. Superior Plus Corp | Siemens Energy vs. NMI Holdings |
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 .
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |