Correlation Between Superior Plus and Sixt SE
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Sixt SE 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 Superior Plus and Sixt SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Sixt SE, you can compare the effects of market volatilities on Superior Plus and Sixt SE 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 Superior Plus with a short position of Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Sixt SE.
Diversification Opportunities for Superior Plus and Sixt SE
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Superior and Sixt is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE and Superior Plus 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 Superior Plus Corp are associated (or correlated) with Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Superior Plus i.e., Superior Plus and Sixt SE go up and down completely randomly.
Pair Corralation between Superior Plus and Sixt SE
Assuming the 90 days horizon Superior Plus Corp is expected to generate 1.88 times more return on investment than Sixt SE. However, Superior Plus is 1.88 times more volatile than Sixt SE. It trades about 0.01 of its potential returns per unit of risk. Sixt SE is currently generating about -0.1 per unit of risk. If you would invest 428.00 in Superior Plus Corp on August 31, 2024 and sell it today you would lose (8.00) from holding Superior Plus Corp or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Superior Plus Corp vs. Sixt SE
Performance |
| Timeline |
| Superior Plus Corp |
| Sixt SE |
Superior Plus and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Sixt SE
The main advantage of trading using opposite Superior Plus and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Sixt SE 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 SE will offset losses from the drop in Sixt SE's long position.| Superior Plus vs. BROADSTNET LEADL 00025 | Superior Plus vs. Mitsubishi Materials | Superior Plus vs. Martin Marietta Materials | Superior Plus vs. Summit Materials |
| Sixt SE vs. Datadog | Sixt SE vs. Datang International Power | Sixt SE vs. QINGCI GAMES INC | Sixt SE vs. GAMING FAC SA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |