Correlation Between TT Electronics and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both TT Electronics 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 TT Electronics and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TT Electronics PLC and Sixt Leasing SE, you can compare the effects of market volatilities on TT Electronics 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 TT Electronics with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of TT Electronics and Sixt Leasing.
Diversification Opportunities for TT Electronics and Sixt Leasing
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 7TT and Sixt is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding TT Electronics PLC 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 TT Electronics 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 TT Electronics PLC 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 TT Electronics i.e., TT Electronics and Sixt Leasing go up and down completely randomly.
Pair Corralation between TT Electronics and Sixt Leasing
Assuming the 90 days trading horizon TT Electronics PLC is expected to under-perform the Sixt Leasing. In addition to that, TT Electronics is 3.12 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 -0.07 per unit of volatility. If you would invest 1,040 in Sixt Leasing SE on November 2, 2024 and sell it today you would lose (125.00) from holding Sixt Leasing SE or give up 12.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TT Electronics PLC vs. Sixt Leasing SE
Performance |
| Timeline |
| TT Electronics PLC |
| Sixt Leasing SE |
TT Electronics and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TT Electronics and Sixt Leasing
The main advantage of trading using opposite TT Electronics and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TT Electronics 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.| TT Electronics vs. ADDUS HOMECARE | TT Electronics vs. Taylor Morrison Home | TT Electronics vs. Neinor Homes SA | TT Electronics vs. Motorcar Parts of |
| Sixt Leasing vs. Ares Management Corp | Sixt Leasing vs. Grupo Carso SAB | Sixt Leasing vs. GEELY AUTOMOBILE | Sixt Leasing vs. NorAm Drilling AS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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