Correlation Between Siemens Aktiengesellscha and HELIOS TECHS

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

By analyzing existing cross correlation between Siemens Aktiengesellschaft and HELIOS TECHS INC, you can compare the effects of market volatilities on Siemens Aktiengesellscha and HELIOS TECHS 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 HELIOS TECHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siemens Aktiengesellscha and HELIOS TECHS.

Diversification Opportunities for Siemens Aktiengesellscha and HELIOS TECHS

0.65

Correlation Coefficient

Siemens Aktiengesellscha  HELIOS TECHS

Poor diversification

The 3 months correlation between Siemens and HELIOS is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Siemens Aktiengesellschaft and HELIOS TECHS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HELIOS TECHS INC 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 HELIOS TECHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HELIOS TECHS INC has no effect on the direction of Siemens Aktiengesellscha i.e., Siemens Aktiengesellscha and HELIOS TECHS go up and down completely randomly.

Pair Corralation between Siemens Aktiengesellscha and HELIOS TECHS

Assuming the 90 days trading horizon Siemens Aktiengesellschaft is expected to generate 0.61 times more return on investment than HELIOS TECHS. However, Siemens Aktiengesellschaft is 1.65 times less risky than HELIOS TECHS. It trades about 0.06 of its potential returns per unit of risk. HELIOS TECHS INC is currently generating about -0.04 per unit of risk. If you would invest  14,299  in Siemens Aktiengesellschaft on April 3, 2025 and sell it today you would earn a total of  7,266  from holding Siemens Aktiengesellschaft or generate 50.81% return on investment over 90 days.

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

Siemens Aktiengesellschaft  vs.  HELIOS TECHS INC

Siemens Aktiengesellscha

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siemens Aktiengesellschaft are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Siemens Aktiengesellscha may actually be approaching a critical reversion point that can send shares even higher in August 2025.

HELIOS TECHS INC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in HELIOS TECHS INC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, HELIOS TECHS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Siemens Aktiengesellscha and HELIOS TECHS

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

The idea behind Siemens Aktiengesellschaft and HELIOS TECHS INC 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.