Correlation Between TSOGO SUN and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both TSOGO SUN 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 TSOGO SUN and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TSOGO SUN GAMING and Sixt Leasing SE, you can compare the effects of market volatilities on TSOGO SUN 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 TSOGO SUN with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of TSOGO SUN and Sixt Leasing.
Diversification Opportunities for TSOGO SUN and Sixt Leasing
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TSOGO and Sixt is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding TSOGO SUN GAMING 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 TSOGO SUN 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 TSOGO SUN GAMING 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 TSOGO SUN i.e., TSOGO SUN and Sixt Leasing go up and down completely randomly.
Pair Corralation between TSOGO SUN and Sixt Leasing
Assuming the 90 days horizon TSOGO SUN GAMING is expected to generate 1.17 times more return on investment than Sixt Leasing. However, TSOGO SUN is 1.17 times more volatile than Sixt Leasing SE. It trades about -0.05 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.06 per unit of risk. If you would invest 59.00 in TSOGO SUN GAMING on September 12, 2024 and sell it today you would lose (4.00) from holding TSOGO SUN GAMING or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TSOGO SUN GAMING vs. Sixt Leasing SE
Performance |
| Timeline |
| TSOGO SUN GAMING |
| Sixt Leasing SE |
TSOGO SUN and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TSOGO SUN and Sixt Leasing
The main advantage of trading using opposite TSOGO SUN and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TSOGO SUN 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.| TSOGO SUN vs. Sands China | TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA |
| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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