Correlation Between Hyster Yale and CSX
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and CSX 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 CSX 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 CSX Corporation, you can compare the effects of market volatilities on Hyster Yale and CSX 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 CSX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and CSX.
Diversification Opportunities for Hyster Yale and CSX
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster and CSX is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and CSX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSX Corporation 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 CSX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSX Corporation has no effect on the direction of Hyster Yale i.e., Hyster Yale and CSX go up and down completely randomly.
Pair Corralation between Hyster Yale and CSX
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the CSX. In addition to that, Hyster Yale is 1.63 times more volatile than CSX Corporation. It trades about -0.14 of its total potential returns per unit of risk. CSX Corporation is currently generating about 0.2 per unit of volatility. If you would invest 3,325 in CSX Corporation on August 30, 2024 and sell it today you would earn a total of 333.00 from holding CSX Corporation or generate 10.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. CSX Corp.
Performance |
| Timeline |
| Hyster Yale Materials |
| CSX Corporation |
Hyster Yale and CSX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and CSX
The main advantage of trading using opposite Hyster Yale and CSX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, CSX 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 CSX will offset losses from the drop in CSX's long position.| Hyster Yale vs. Alamo Group | Hyster Yale vs. Titan International | Hyster Yale vs. Terex | Hyster Yale vs. Oshkosh |
| CSX vs. Union Pacific | CSX vs. Canadian National Railway | CSX vs. Canadian Pacific Railway | CSX vs. Westinghouse Air Brake |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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