Correlation Between Astec Industries and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Astec Industries 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 Astec Industries and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astec Industries and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Astec Industries 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 Astec Industries with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astec Industries and Hyster Yale.
Diversification Opportunities for Astec Industries and Hyster Yale
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astec and Hyster is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Astec Industries 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 Astec Industries 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 Astec Industries 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 Astec Industries i.e., Astec Industries and Hyster Yale go up and down completely randomly.
Pair Corralation between Astec Industries and Hyster Yale
Given the investment horizon of 90 days Astec Industries is expected to under-perform the Hyster Yale. In addition to that, Astec Industries is 1.33 times more volatile than Hyster Yale Materials Handling. It trades about -0.05 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.06 per unit of volatility. If you would invest 5,387 in Hyster Yale Materials Handling on November 18, 2024 and sell it today you would lose (105.00) from holding Hyster Yale Materials Handling or give up 1.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astec Industries vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Astec Industries |
| Hyster Yale Materials |
Astec Industries and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astec Industries and Hyster Yale
The main advantage of trading using opposite Astec Industries and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astec Industries 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.| Astec Industries vs. Hyster Yale Materials Handling | Astec Industries vs. Shyft Group | Astec Industries vs. Rev Group | Astec Industries vs. Lindsay |
| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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