Correlation Between Siemens Energy and TSOGO SUN

Can any of the company-specific risk be diversified away by investing in both Siemens Energy and TSOGO SUN 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 Energy and TSOGO SUN into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siemens Energy AG and TSOGO SUN GAMING, you can compare the effects of market volatilities on Siemens Energy and TSOGO SUN 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 Energy with a short position of TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Energy and TSOGO SUN.

Diversification Opportunities for Siemens Energy and TSOGO SUN

-0.78

Correlation Coefficient

Siemens Energy  TSOGO SUN

Pay attention - limited upside

The 3 months correlation between Siemens and TSOGO is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Energy AG and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING and Siemens Energy 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 Energy AG are associated (or correlated) with TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of Siemens Energy i.e., Siemens Energy and TSOGO SUN go up and down completely randomly.

Pair Corralation between Siemens Energy and TSOGO SUN

Assuming the 90 days trading horizon Siemens Energy AG is expected to generate 0.77 times more return on investment than TSOGO SUN. However, Siemens Energy AG is 1.29 times less risky than TSOGO SUN. It trades about 0.2 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about -0.05 per unit of risk. If you would invest  7,328  in Siemens Energy AG on May 5, 2025 and sell it today you would earn a total of  2,434  from holding Siemens Energy AG or generate 33.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Siemens Energy AG  vs.  TSOGO SUN GAMING

Siemens Energy AG

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Siemens Energy AG are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Siemens Energy unveiled solid returns over the last few months and may actually be approaching a breakup point.

TSOGO SUN GAMING

Risk-Adjusted Performance

Very Weak

Over the last 90 days TSOGO SUN GAMING has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Siemens Energy and TSOGO SUN

The main advantage of trading using opposite Siemens Energy and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siemens Energy position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.

The idea behind Siemens Energy AG and TSOGO SUN GAMING 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.