Correlation Between Sinotruk (Hong and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Sinotruk (Hong and Hyster Yale 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 Sinotruk (Hong and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinotruk Limited and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Sinotruk (Hong and Hyster Yale 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 Sinotruk (Hong with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinotruk (Hong and Hyster Yale.
Diversification Opportunities for Sinotruk (Hong and Hyster Yale
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sinotruk and Hyster is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sinotruk Limited and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials and Sinotruk (Hong 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 Sinotruk Limited are associated (or correlated) with Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Sinotruk (Hong i.e., Sinotruk (Hong and Hyster Yale go up and down completely randomly.
Pair Corralation between Sinotruk (Hong and Hyster Yale
Assuming the 90 days horizon Sinotruk (Hong is expected to generate 4.46 times less return on investment than Hyster Yale. In addition to that, Sinotruk (Hong is 2.32 times more volatile than Hyster Yale Materials Handling. It trades about 0.01 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.14 per unit of volatility. If you would invest 4,860 in Hyster Yale Materials Handling on November 3, 2024 and sell it today you would earn a total of 190.00 from holding Hyster Yale Materials Handling or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sinotruk Limited vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Sinotruk Limited |
| Hyster Yale Materials |
Sinotruk (Hong and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinotruk (Hong and Hyster Yale
The main advantage of trading using opposite Sinotruk (Hong and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinotruk (Hong position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Sinotruk (Hong vs. SOFI TECHNOLOGIES | Sinotruk (Hong vs. NTG Nordic Transport | Sinotruk (Hong vs. Transport International Holdings | Sinotruk (Hong vs. Firan Technology Group |
| Hyster Yale vs. AB Volvo | Hyster Yale vs. PACCAR Inc | Hyster Yale vs. KION Group AG | Hyster Yale vs. Sinotruk Limited |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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