Correlation Between Hyster Yale and Astec Industries
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Astec Industries 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 Hyster Yale and Astec Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Astec Industries, you can compare the effects of market volatilities on Hyster Yale and Astec Industries 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 Hyster Yale with a short position of Astec Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Astec Industries.
Diversification Opportunities for Hyster Yale and Astec Industries
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyster and Astec is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Astec Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astec Industries and Hyster Yale 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 Hyster Yale Materials Handling are associated (or correlated) with Astec Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astec Industries has no effect on the direction of Hyster Yale i.e., Hyster Yale and Astec Industries go up and down completely randomly.
Pair Corralation between Hyster Yale and Astec Industries
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the Astec Industries. In addition to that, Hyster Yale is 1.01 times more volatile than Astec Industries. It trades about -0.07 of its total potential returns per unit of risk. Astec Industries is currently generating about 0.08 per unit of volatility. If you would invest 3,190 in Astec Industries on November 1, 2024 and sell it today you would earn a total of 367.00 from holding Astec Industries or generate 11.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Astec Industries
Performance |
| Timeline |
| Hyster Yale Materials |
| Astec Industries |
Hyster Yale and Astec Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Astec Industries
The main advantage of trading using opposite Hyster Yale and Astec Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Astec Industries 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 Astec Industries will offset losses from the drop in Astec Industries' long position.| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo Group |
| Astec Industries vs. Hyster Yale Materials Handling | Astec Industries vs. Shyft Group | Astec Industries vs. Rev Group | Astec Industries vs. Lindsay |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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