Correlation Between ANGI Homeservices and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both ANGI Homeservices and Sixt Leasing 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 ANGI Homeservices and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANGI Homeservices and Sixt Leasing SE, you can compare the effects of market volatilities on ANGI Homeservices and Sixt Leasing 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 ANGI Homeservices with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANGI Homeservices and Sixt Leasing.
Diversification Opportunities for ANGI Homeservices and Sixt Leasing
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ANGI and Sixt is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ANGI Homeservices and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE and ANGI Homeservices 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 ANGI Homeservices are associated (or correlated) with Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of ANGI Homeservices i.e., ANGI Homeservices and Sixt Leasing go up and down completely randomly.
Pair Corralation between ANGI Homeservices and Sixt Leasing
Assuming the 90 days horizon ANGI Homeservices is expected to under-perform the Sixt Leasing. In addition to that, ANGI Homeservices is 3.56 times more volatile than Sixt Leasing SE. It trades about -0.08 of its total potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.16 per unit of volatility. If you would invest 990.00 in Sixt Leasing SE on August 29, 2024 and sell it today you would lose (65.00) from holding Sixt Leasing SE or give up 6.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
ANGI Homeservices vs. Sixt Leasing SE
Performance |
| Timeline |
| ANGI Homeservices |
| Sixt Leasing SE |
ANGI Homeservices and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANGI Homeservices and Sixt Leasing
The main advantage of trading using opposite ANGI Homeservices and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANGI Homeservices position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| ANGI Homeservices vs. Webster Financial | ANGI Homeservices vs. ATOSS SOFTWARE | ANGI Homeservices vs. FORMPIPE SOFTWARE AB | ANGI Homeservices vs. CDN IMPERIAL BANK |
| Sixt Leasing vs. Aedas Homes SA | Sixt Leasing vs. Taylor Morrison Home | Sixt Leasing vs. ANGI Homeservices | Sixt Leasing vs. RETAIL FOOD GROUP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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