Correlation Between Siemens Aktiengesellscha and Siemens Energy
Can any of the company-specific risk be diversified away by investing in both Siemens Aktiengesellscha 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 Siemens Aktiengesellscha and Siemens Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siemens Aktiengesellschaft and Siemens Energy AG, you can compare the effects of market volatilities on Siemens Aktiengesellscha 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 Siemens Aktiengesellscha with a short position of Siemens Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Aktiengesellscha and Siemens Energy.
Diversification Opportunities for Siemens Aktiengesellscha and Siemens Energy
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siemens and Siemens is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Aktiengesellschaft 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 Siemens Aktiengesellscha 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 Aktiengesellschaft 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 Siemens Aktiengesellscha i.e., Siemens Aktiengesellscha and Siemens Energy go up and down completely randomly.
Pair Corralation between Siemens Aktiengesellscha and Siemens Energy
Assuming the 90 days trading horizon Siemens Aktiengesellschaft is expected to generate 0.51 times more return on investment than Siemens Energy. However, Siemens Aktiengesellschaft is 1.95 times less risky than Siemens Energy. It trades about 0.18 of its potential returns per unit of risk. Siemens Energy AG is currently generating about 0.09 per unit of risk. If you would invest 18,082 in Siemens Aktiengesellschaft on September 25, 2024 and sell it today you would earn a total of 816.00 from holding Siemens Aktiengesellschaft or generate 4.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siemens Aktiengesellschaft vs. Siemens Energy AG
Performance |
| Timeline |
| Siemens Aktiengesellscha |
| Siemens Energy AG |
Siemens Aktiengesellscha and Siemens Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siemens Aktiengesellscha and Siemens Energy
The main advantage of trading using opposite Siemens Aktiengesellscha and Siemens Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Aktiengesellscha 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.| Siemens Aktiengesellscha vs. SIEMENS AG SP | Siemens Aktiengesellscha vs. Schneider Electric SE | Siemens Aktiengesellscha vs. Atlas Copco A | Siemens Aktiengesellscha vs. RATIONAL Aktiengesellschaft |
| Siemens Energy vs. SIEMENS AG SP | Siemens Energy vs. Siemens Aktiengesellschaft | Siemens Energy vs. Schneider Electric SE | Siemens Energy vs. Atlas Copco A |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |