Correlation Between GRENKELEASING and Commercial Vehicle
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING and Commercial Vehicle 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 GRENKELEASING and Commercial Vehicle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and Commercial Vehicle Group, you can compare the effects of market volatilities on GRENKELEASING and Commercial Vehicle 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 GRENKELEASING with a short position of Commercial Vehicle. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING and Commercial Vehicle.
Diversification Opportunities for GRENKELEASING and Commercial Vehicle
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRENKELEASING and Commercial is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and Commercial Vehicle Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial Vehicle and GRENKELEASING 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 GRENKELEASING Dusseldorf are associated (or correlated) with Commercial Vehicle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial Vehicle has no effect on the direction of GRENKELEASING i.e., GRENKELEASING and Commercial Vehicle go up and down completely randomly.
Pair Corralation between GRENKELEASING and Commercial Vehicle
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 0.67 times more return on investment than Commercial Vehicle. However, GRENKELEASING Dusseldorf is 1.49 times less risky than Commercial Vehicle. It trades about 0.23 of its potential returns per unit of risk. Commercial Vehicle Group is currently generating about -0.12 per unit of risk. If you would invest 1,564 in GRENKELEASING Dusseldorf on October 17, 2024 and sell it today you would earn a total of 132.00 from holding GRENKELEASING Dusseldorf or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. Commercial Vehicle Group
Performance |
| Timeline |
| GRENKELEASING Duss |
| Commercial Vehicle |
GRENKELEASING and Commercial Vehicle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING and Commercial Vehicle
The main advantage of trading using opposite GRENKELEASING and Commercial Vehicle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING position performs unexpectedly, Commercial Vehicle 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 Commercial Vehicle will offset losses from the drop in Commercial Vehicle's long position.| GRENKELEASING vs. Osisko Metals | GRENKELEASING vs. Aluminum of | GRENKELEASING vs. PARKEN Sport Entertainment | GRENKELEASING vs. Yuexiu Transport Infrastructure |
| Commercial Vehicle vs. FIRST SHIP LEASE | Commercial Vehicle vs. Forsys Metals Corp | Commercial Vehicle vs. GRENKELEASING Dusseldorf | Commercial Vehicle vs. Globex Mining Enterprises |
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.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |