Correlation Between GOODYEAR T and Hyster-Yale Materials
Can any of the company-specific risk be diversified away by investing in both GOODYEAR T and Hyster-Yale Materials 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 GOODYEAR T and Hyster-Yale Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOODYEAR T RUBBER and Hyster Yale Materials Handling, you can compare the effects of market volatilities on GOODYEAR T and Hyster-Yale Materials 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 GOODYEAR T with a short position of Hyster-Yale Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOODYEAR T and Hyster-Yale Materials.
Diversification Opportunities for GOODYEAR T and Hyster-Yale Materials
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GOODYEAR and Hyster-Yale is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding GOODYEAR T RUBBER and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials and GOODYEAR T 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 GOODYEAR T RUBBER are associated (or correlated) with Hyster-Yale Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of GOODYEAR T i.e., GOODYEAR T and Hyster-Yale Materials go up and down completely randomly.
Pair Corralation between GOODYEAR T and Hyster-Yale Materials
Assuming the 90 days trading horizon GOODYEAR T RUBBER is expected to under-perform the Hyster-Yale Materials. But the stock apears to be less risky and, when comparing its historical volatility, GOODYEAR T RUBBER is 1.12 times less risky than Hyster-Yale Materials. The stock trades about 0.0 of its potential returns per unit of risk. The Hyster Yale Materials Handling is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,674 in Hyster Yale Materials Handling on September 2, 2024 and sell it today you would earn a total of 576.00 from holding Hyster Yale Materials Handling or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GOODYEAR T RUBBER vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| GOODYEAR T RUBBER |
| Hyster Yale Materials |
GOODYEAR T and Hyster-Yale Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOODYEAR T and Hyster-Yale Materials
The main advantage of trading using opposite GOODYEAR T and Hyster-Yale Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOODYEAR T position performs unexpectedly, Hyster-Yale Materials 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 Hyster-Yale Materials will offset losses from the drop in Hyster-Yale Materials' long position.| GOODYEAR T vs. Uber Technologies | GOODYEAR T vs. Sixt Leasing SE | GOODYEAR T vs. Lendlease Group | GOODYEAR T vs. Nucletron Electronic Aktiengesellschaft |
| Hyster-Yale Materials vs. Ming Le Sports | Hyster-Yale Materials vs. Lion One Metals | Hyster-Yale Materials vs. VIAPLAY GROUP AB | Hyster-Yale Materials vs. Cars 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |