Correlation Between GAMING FAC and Sixt SE
Can any of the company-specific risk be diversified away by investing in both GAMING FAC 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 GAMING FAC and Sixt SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GAMING FAC SA and Sixt SE, you can compare the effects of market volatilities on GAMING FAC 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 GAMING FAC with a short position of Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAMING FAC and Sixt SE.
Diversification Opportunities for GAMING FAC and Sixt SE
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GAMING and Sixt is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding GAMING FAC SA and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE and GAMING FAC 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 GAMING FAC SA 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 GAMING FAC i.e., GAMING FAC and Sixt SE go up and down completely randomly.
Pair Corralation between GAMING FAC and Sixt SE
Assuming the 90 days horizon GAMING FAC SA is expected to under-perform the Sixt SE. In addition to that, GAMING FAC is 1.87 times more volatile than Sixt SE. It trades about -0.05 of its total potential returns per unit of risk. Sixt SE is currently generating about -0.08 per unit of volatility. If you would invest 7,360 in Sixt SE on September 2, 2024 and sell it today you would lose (370.00) from holding Sixt SE or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GAMING FAC SA vs. Sixt SE
Performance |
| Timeline |
| GAMING FAC SA |
| Sixt SE |
GAMING FAC and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GAMING FAC and Sixt SE
The main advantage of trading using opposite GAMING FAC and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAMING FAC 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.| GAMING FAC vs. Nintendo Co | GAMING FAC vs. Sea Limited | GAMING FAC vs. Superior Plus Corp | GAMING FAC vs. NMI Holdings |
| Sixt SE vs. Superior Plus Corp | Sixt SE vs. NMI Holdings | Sixt SE vs. Origin Agritech | Sixt SE vs. SIVERS SEMICONDUCTORS AB |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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