Correlation Between GLOBUS MEDICAL and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both GLOBUS MEDICAL 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 GLOBUS MEDICAL and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLOBUS MEDICAL A and Sixt Leasing SE, you can compare the effects of market volatilities on GLOBUS MEDICAL 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 GLOBUS MEDICAL with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLOBUS MEDICAL and Sixt Leasing.
Diversification Opportunities for GLOBUS MEDICAL and Sixt Leasing
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLOBUS and Sixt is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding GLOBUS MEDICAL A 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 GLOBUS MEDICAL 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 GLOBUS MEDICAL A 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 GLOBUS MEDICAL i.e., GLOBUS MEDICAL and Sixt Leasing go up and down completely randomly.
Pair Corralation between GLOBUS MEDICAL and Sixt Leasing
Assuming the 90 days trading horizon GLOBUS MEDICAL A is expected to generate 1.29 times more return on investment than Sixt Leasing. However, GLOBUS MEDICAL is 1.29 times more volatile than Sixt Leasing SE. It trades about 0.14 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about 0.01 per unit of risk. If you would invest 8,000 in GLOBUS MEDICAL A on October 30, 2024 and sell it today you would earn a total of 700.00 from holding GLOBUS MEDICAL A or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLOBUS MEDICAL A vs. Sixt Leasing SE
Performance |
| Timeline |
| GLOBUS MEDICAL A |
| Sixt Leasing SE |
GLOBUS MEDICAL and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLOBUS MEDICAL and Sixt Leasing
The main advantage of trading using opposite GLOBUS MEDICAL and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLOBUS MEDICAL 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.| GLOBUS MEDICAL vs. PKSHA TECHNOLOGY INC | GLOBUS MEDICAL vs. Cognizant Technology Solutions | GLOBUS MEDICAL vs. Firan Technology Group | GLOBUS MEDICAL vs. DXC Technology Co |
| Sixt Leasing vs. GOME Retail Holdings | Sixt Leasing vs. Summit Hotel Properties | Sixt Leasing vs. Costco Wholesale Corp | Sixt Leasing vs. Meli Hotels International |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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