Correlation Between FORWARD AIR and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both FORWARD AIR 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 FORWARD AIR and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FORWARD AIR P and Sixt Leasing SE, you can compare the effects of market volatilities on FORWARD AIR 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 FORWARD AIR with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of FORWARD AIR and Sixt Leasing.
Diversification Opportunities for FORWARD AIR and Sixt Leasing
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FORWARD and Sixt is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P 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 FORWARD AIR 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 FORWARD AIR P 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 FORWARD AIR i.e., FORWARD AIR and Sixt Leasing go up and down completely randomly.
Pair Corralation between FORWARD AIR and Sixt Leasing
Assuming the 90 days horizon FORWARD AIR P is expected to generate 2.29 times more return on investment than Sixt Leasing. However, FORWARD AIR is 2.29 times more volatile than Sixt Leasing SE. It trades about -0.04 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.19 per unit of risk. If you would invest 3,180 in FORWARD AIR P on October 11, 2024 and sell it today you would lose (100.00) from holding FORWARD AIR P or give up 3.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FORWARD AIR P vs. Sixt Leasing SE
Performance |
| Timeline |
| FORWARD AIR P |
| Sixt Leasing SE |
FORWARD AIR and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FORWARD AIR and Sixt Leasing
The main advantage of trading using opposite FORWARD AIR and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FORWARD AIR 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.| FORWARD AIR vs. Constellation Software | FORWARD AIR vs. Treasury Wine Estates | FORWARD AIR vs. Wenzhou Kangning Hospital | FORWARD AIR vs. VIRGIN WINES UK |
| Sixt Leasing vs. SYSTEMAIR AB | Sixt Leasing vs. Entravision Communications | Sixt Leasing vs. FORWARD AIR P | Sixt Leasing vs. Cogent Communications Holdings |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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