Correlation Between Heidelberg Materials and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Heidelberg Materials and Hyster Yale 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 Heidelberg Materials and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heidelberg Materials AG and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Heidelberg Materials and Hyster Yale 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 Heidelberg Materials with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heidelberg Materials and Hyster Yale.
Diversification Opportunities for Heidelberg Materials and Hyster Yale
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Heidelberg and Hyster is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Heidelberg Materials AG 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 Heidelberg Materials 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 Heidelberg Materials AG are associated (or correlated) with Hyster Yale. 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 Heidelberg Materials i.e., Heidelberg Materials and Hyster Yale go up and down completely randomly.
Pair Corralation between Heidelberg Materials and Hyster Yale
Assuming the 90 days horizon Heidelberg Materials AG is expected to generate 0.58 times more return on investment than Hyster Yale. However, Heidelberg Materials AG is 1.73 times less risky than Hyster Yale. It trades about 0.25 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.14 per unit of risk. If you would invest 11,875 in Heidelberg Materials AG on September 15, 2024 and sell it today you would earn a total of 705.00 from holding Heidelberg Materials AG or generate 5.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heidelberg Materials AG vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Heidelberg Materials |
| Hyster Yale Materials |
Heidelberg Materials and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heidelberg Materials and Hyster Yale
The main advantage of trading using opposite Heidelberg Materials and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heidelberg Materials position performs unexpectedly, Hyster Yale 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 will offset losses from the drop in Hyster Yale's long position.| Heidelberg Materials vs. CHEMICAL INDUSTRIES | Heidelberg Materials vs. INDO RAMA SYNTHETIC | Heidelberg Materials vs. Casio Computer CoLtd | Heidelberg Materials vs. FANDIFI TECHNOLOGY P |
| Hyster Yale vs. MIRAMAR HOTEL INV | Hyster Yale vs. Pembina Pipeline Corp | Hyster Yale vs. Wyndham Hotels Resorts | Hyster Yale vs. CITIC Telecom 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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