Correlation Between Data Modul and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Data Modul 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 Data Modul and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data Modul AG and Sixt Leasing SE, you can compare the effects of market volatilities on Data Modul 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 Data Modul with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data Modul and Sixt Leasing.
Diversification Opportunities for Data Modul and Sixt Leasing
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Data and Sixt is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Data Modul AG 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 Data Modul 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 Data Modul AG 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 Data Modul i.e., Data Modul and Sixt Leasing go up and down completely randomly.
Pair Corralation between Data Modul and Sixt Leasing
Assuming the 90 days trading horizon Data Modul AG is expected to under-perform the Sixt Leasing. In addition to that, Data Modul is 6.01 times more volatile than Sixt Leasing SE. It trades about -0.05 of its total potential returns per unit of risk. Sixt Leasing SE is currently generating about 0.0 per unit of volatility. If you would invest 915.00 in Sixt Leasing SE on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Sixt Leasing SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data Modul AG vs. Sixt Leasing SE
Performance |
| Timeline |
| Data Modul AG |
| Sixt Leasing SE |
Data Modul and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data Modul and Sixt Leasing
The main advantage of trading using opposite Data Modul and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data Modul 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.| Data Modul vs. Xiwang Special Steel | Data Modul vs. HK Electric Investments | Data Modul vs. AGNC INVESTMENT | Data Modul vs. NEW MILLENNIUM IRON |
| Sixt Leasing vs. Pembina Pipeline Corp | Sixt Leasing vs. PRECISION DRILLING P | Sixt Leasing vs. Southwest Airlines Co | Sixt Leasing vs. International Consolidated Airlines |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |