Correlation Between Daimler Truck and Traton SE
Specify exactly 2 symbols:
By analyzing existing cross correlation between Daimler Truck Holding and Traton SE, you can compare the effects of market volatilities on Daimler Truck and Traton 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 Daimler Truck with a short position of Traton SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daimler Truck and Traton SE.
Diversification Opportunities for Daimler Truck and Traton SE
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Daimler and Traton is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Daimler Truck Holding and Traton SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traton SE and Daimler Truck 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 Daimler Truck Holding are associated (or correlated) with Traton SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traton SE has no effect on the direction of Daimler Truck i.e., Daimler Truck and Traton SE go up and down completely randomly.
Pair Corralation between Daimler Truck and Traton SE
Assuming the 90 days trading horizon Daimler Truck is expected to generate 2.65 times less return on investment than Traton SE. But when comparing it to its historical volatility, Daimler Truck Holding is 1.09 times less risky than Traton SE. It trades about 0.04 of its potential returns per unit of risk. Traton SE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,348 in Traton SE on September 2, 2024 and sell it today you would earn a total of 1,522 from holding Traton SE or generate 112.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daimler Truck Holding vs. Traton SE
Performance |
| Timeline |
| Daimler Truck Holding |
| Traton SE |
Daimler Truck and Traton SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daimler Truck and Traton SE
The main advantage of trading using opposite Daimler Truck and Traton SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daimler Truck position performs unexpectedly, Traton 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 Traton SE will offset losses from the drop in Traton SE's long position.The idea behind Daimler Truck Holding and Traton SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Traton SE vs. Apollo Medical Holdings | Traton SE vs. CyberArk Software | Traton SE vs. Japan Medical Dynamic | Traton SE vs. Clearside Biomedical |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |