Siemens Energy Ag Stock Volatility
| SMNEY Stock | USD 54.08 2.77 5.40% |
Siemens Energy is very steady given 3 months investment horizon. Siemens Energy AG owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.43, which indicates the firm had a 0.43% return per unit of risk over the last 3 months. We were able to analyze and collect data for twenty-nine different technical indicators, which can help you to evaluate if expected returns of 1.07% are justified by taking the suggested risk. Use Siemens Energy AG Coefficient Of Variation of 243.83, risk adjusted performance of 0.3205, and Semi Deviation of 1.76 to evaluate company specific risk that cannot be diversified away. Key indicators related to Siemens Energy's volatility include:
360 Days Market Risk | Chance Of Distress | 360 Days Economic Sensitivity |
Siemens Energy Pink Sheet volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Siemens daily returns, and it is calculated using variance and standard deviation. We also use Siemens's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Siemens Energy volatility.
Siemens |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Siemens Energy can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Siemens Energy at lower prices. For example, an investor can purchase Siemens stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Siemens Energy's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Siemens Pink Sheet
| 0.95 | ETN | Eaton PLC | PairCorr |
| 0.93 | PH | Parker Hannifin | PairCorr |
| 0.91 | ITW | Illinois Tool Works | PairCorr |
| 0.9 | EMR | Emerson Electric | PairCorr |
Moving against Siemens Pink Sheet
| 0.88 | PPERF | Bank Mandiri Persero | PairCorr |
| 0.83 | BKRKY | Bank Rakyat | PairCorr |
| 0.82 | BKRKF | PT Bank Rakyat | PairCorr |
| 0.81 | PPERY | Bank Mandiri Persero | PairCorr |
| 0.55 | PBCRY | Bank Central Asia | PairCorr |
| 0.4 | PTAIY | Astra International Tbk | PairCorr |
Siemens Energy Market Sensitivity And Downside Risk
Siemens Energy's beta coefficient measures the volatility of Siemens pink sheet compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Siemens pink sheet's returns against your selected market. In other words, Siemens Energy's beta of 0.64 provides an investor with an approximation of how much risk Siemens Energy pink sheet can potentially add to one of your existing portfolios. Siemens Energy AG currently demonstrates below-average downside deviation. It has Information Ratio of 0.36 and Jensen Alpha of 0.94. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Siemens Energy's pink sheet risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Siemens Energy's pink sheet price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Siemens Energy AG Demand TrendCheck current 90 days Siemens Energy correlation with market (Dow Jones Industrial)Siemens Beta |
Siemens standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 2.48 |
It is essential to understand the difference between upside risk (as represented by Siemens Energy's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Siemens Energy's daily returns or price. Since the actual investment returns on holding a position in siemens pink sheet tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Siemens Energy.
Siemens Energy AG Pink Sheet Volatility Analysis
Volatility refers to the frequency at which Siemens Energy pink sheet price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Siemens Energy's price changes. Investors will then calculate the volatility of Siemens Energy's pink sheet to predict their future moves. A pink sheet that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A pink sheet with relatively stable price changes has low volatility. A highly volatile pink sheet is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Siemens Energy's volatility:
Historical Volatility
This type of pink sheet volatility measures Siemens Energy's fluctuations based on previous trends. It's commonly used to predict Siemens Energy's future behavior based on its past. However, it cannot conclusively determine the future direction of the pink sheet.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Siemens Energy's current market price. This means that the pink sheet will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Siemens Energy's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Siemens Energy AG Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Siemens Energy Projected Return Density Against Market
Assuming the 90 days horizon Siemens Energy has a beta of 0.6423 . This usually implies as returns on the market go up, Siemens Energy average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Siemens Energy AG will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Siemens Energy or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Siemens Energy's price will be affected by overall pink sheet market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Siemens pink sheet's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Siemens Energy AG has an alpha of 0.9386, implying that it can generate a 0.94 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Predicted Return Density |
| Returns |
What Drives a Siemens Energy Price Volatility?
Several factors can influence a pink sheet's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Siemens Energy Pink Sheet Risk Measures
Assuming the 90 days horizon the coefficient of variation of Siemens Energy is 232.42. The daily returns are distributed with a variance of 6.16 and standard deviation of 2.48. The mean deviation of Siemens Energy AG is currently at 1.8. For similar time horizon, the selected benchmark (Dow Jones Industrial) has volatility of 0.76
α | Alpha over Dow Jones | 0.94 | |
β | Beta against Dow Jones | 0.64 | |
σ | Overall volatility | 2.48 | |
Ir | Information ratio | 0.36 |
Siemens Energy Pink Sheet Return Volatility
Siemens Energy historical daily return volatility represents how much of Siemens Energy pink sheet's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The company shows 2.482% volatility of returns over 90 . By contrast, Dow Jones Industrial accepts 0.7444% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Siemens Energy Volatility
Volatility is a rate at which the price of Siemens Energy or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Siemens Energy may increase or decrease. In other words, similar to Siemens's beta indicator, it measures the risk of Siemens Energy and helps estimate the fluctuations that may happen in a short period of time. So if prices of Siemens Energy fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.Siemens Energy AG operates as an energy technology company worldwide. Siemens Energy AG was founded in 1866 and is based in Munich, Germany. Siemens Energy is traded on OTC Exchange in the United States.
Siemens Energy's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Siemens Pink Sheet over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Siemens Energy's price varies over time.
3 ways to utilize Siemens Energy's volatility to invest better
Higher Siemens Energy's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Siemens Energy AG stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Siemens Energy AG stock volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Siemens Energy AG investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Siemens Energy's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Siemens Energy's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Siemens Energy Investment Opportunity
Siemens Energy AG has a volatility of 2.48 and is 3.35 times more volatile than Dow Jones Industrial. 22 percent of all equities and portfolios are less risky than Siemens Energy. You can use Siemens Energy AG to enhance the returns of your portfolios. The pink sheet experiences a very speculative upward sentiment. The trend is possibly hyped up. Check odds of Siemens Energy to be traded at $67.6 in 90 days.Modest diversification
The correlation between Siemens Energy AG and DJI is 0.2 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Energy AG and DJI in the same portfolio, assuming nothing else is changed.
Siemens Energy Additional Risk Indicators
The analysis of Siemens Energy's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Siemens Energy's investment and either accepting that risk or mitigating it. Along with some common measures of Siemens Energy pink sheet's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.3205 | |||
| Market Risk Adjusted Performance | 1.6 | |||
| Mean Deviation | 1.84 | |||
| Semi Deviation | 1.76 | |||
| Downside Deviation | 2.57 | |||
| Coefficient Of Variation | 243.83 | |||
| Standard Deviation | 2.51 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential pink sheets, we recommend comparing similar pink sheets with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Siemens Energy Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Siemens Energy as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Siemens Energy's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Siemens Energy's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Siemens Energy AG.
Additional Tools for Siemens Pink Sheet Analysis
When running Siemens Energy's price analysis, check to measure Siemens Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Siemens Energy is operating at the current time. Most of Siemens Energy's value examination focuses on studying past and present price action to predict the probability of Siemens Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Siemens Energy's price. Additionally, you may evaluate how the addition of Siemens Energy to your portfolios can decrease your overall portfolio volatility.