Correlation Between Hyster Yale and Hirequest
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Hirequest 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 Hirequest 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 Hirequest, you can compare the effects of market volatilities on Hyster Yale and Hirequest 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 Hirequest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Hirequest.
Diversification Opportunities for Hyster Yale and Hirequest
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster and Hirequest is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Hirequest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hirequest 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 Hirequest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hirequest has no effect on the direction of Hyster Yale i.e., Hyster Yale and Hirequest go up and down completely randomly.
Pair Corralation between Hyster Yale and Hirequest
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the Hirequest. In addition to that, Hyster Yale is 1.31 times more volatile than Hirequest. It trades about -0.13 of its total potential returns per unit of risk. Hirequest is currently generating about 0.23 per unit of volatility. If you would invest 1,331 in Hirequest on September 1, 2024 and sell it today you would earn a total of 190.00 from holding Hirequest or generate 14.27% 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. Hirequest
Performance |
| Timeline |
| Hyster Yale Materials |
| Hirequest |
Hyster Yale and Hirequest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Hirequest
The main advantage of trading using opposite Hyster Yale and Hirequest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Hirequest 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 Hirequest will offset losses from the drop in Hirequest's long position.| Hyster Yale vs. Astec Industries | Hyster Yale vs. Manitex International | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group |
| Hirequest vs. Kelly Services B | Hirequest vs. Kforce Inc | Hirequest vs. Heidrick Struggles International | Hirequest vs. Hudson Global |
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 Stocks Directory module to find actively traded stocks across global markets.
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