Correlation Between Gaztransport Technigaz and Siemens Healthineers

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

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

Diversification Opportunities for Gaztransport Technigaz and Siemens Healthineers

0.0

Correlation Coefficient

Gaztransport Technigaz  Siemens Healthineers

Pay attention - limited upside

The 3 months correlation between Gaztransport and Siemens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gaztransport Technigaz SA and Siemens Healthineers AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siemens Healthineers and Gaztransport Technigaz 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 Gaztransport Technigaz SA are associated (or correlated) with Siemens Healthineers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siemens Healthineers has no effect on the direction of Gaztransport Technigaz i.e., Gaztransport Technigaz and Siemens Healthineers go up and down completely randomly.

Pair Corralation between Gaztransport Technigaz and Siemens Healthineers

If you would invest  12,754  in Gaztransport Technigaz SA on October 10, 2024 and sell it today you would earn a total of  696.00  from holding Gaztransport Technigaz SA or generate 5.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.69%
Values	Daily Returns

Gaztransport Technigaz SA  vs.  Siemens Healthineers AG

Gaztransport Technigaz

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gaztransport Technigaz SA are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Gaztransport Technigaz may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Siemens Healthineers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siemens Healthineers AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Siemens Healthineers is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Gaztransport Technigaz and Siemens Healthineers

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

The idea behind Gaztransport Technigaz SA and Siemens Healthineers AG 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.