Correlation Between Titan Machinery and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Titan Machinery 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 Titan Machinery and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan Machinery and Sixt Leasing SE, you can compare the effects of market volatilities on Titan Machinery 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 Titan Machinery with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan Machinery and Sixt Leasing.
Diversification Opportunities for Titan Machinery and Sixt Leasing
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Titan and Sixt is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Titan Machinery 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 Titan Machinery 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 Titan Machinery 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 Titan Machinery i.e., Titan Machinery and Sixt Leasing go up and down completely randomly.
Pair Corralation between Titan Machinery and Sixt Leasing
Assuming the 90 days horizon Titan Machinery is expected to under-perform the Sixt Leasing. In addition to that, Titan Machinery is 2.12 times more volatile than Sixt Leasing SE. It trades about -0.12 of its total potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.04 per unit of volatility. If you would invest 925.00 in Sixt Leasing SE on October 14, 2024 and sell it today you would lose (10.00) from holding Sixt Leasing SE or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan Machinery vs. Sixt Leasing SE
Performance |
| Timeline |
| Titan Machinery |
| Sixt Leasing SE |
Titan Machinery and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan Machinery and Sixt Leasing
The main advantage of trading using opposite Titan Machinery and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan Machinery 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.| Titan Machinery vs. MCEWEN MINING INC | Titan Machinery vs. 24SEVENOFFICE GROUP AB | Titan Machinery vs. Jacquet Metal Service | Titan Machinery vs. Taylor Morrison Home |
| Sixt Leasing vs. Titan Machinery | Sixt Leasing vs. Compagnie Plastic Omnium | Sixt Leasing vs. APPLIED MATERIALS | Sixt Leasing vs. GOODYEAR T RUBBER |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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