Correlation Between Hyster Yale and International Consolidated
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and International Consolidated 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 International Consolidated 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 International Consolidated Airlines, you can compare the effects of market volatilities on Hyster Yale and International Consolidated 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 International Consolidated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and International Consolidated.
Diversification Opportunities for Hyster Yale and International Consolidated
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster and International is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and International Consolidated Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Consolidated 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 International Consolidated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Consolidated has no effect on the direction of Hyster Yale i.e., Hyster Yale and International Consolidated go up and down completely randomly.
Pair Corralation between Hyster Yale and International Consolidated
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the International Consolidated. But the stock apears to be less risky and, when comparing its historical volatility, Hyster Yale Materials Handling is 1.15 times less risky than International Consolidated. The stock trades about -0.12 of its potential returns per unit of risk. The International Consolidated Airlines is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 807.00 in International Consolidated Airlines on November 27, 2024 and sell it today you would earn a total of 13.00 from holding International Consolidated Airlines or generate 1.61% 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. International Consolidated Air
Performance |
| Timeline |
| Hyster Yale Materials |
| International Consolidated |
Hyster Yale and International Consolidated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and International Consolidated
The main advantage of trading using opposite Hyster Yale and International Consolidated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, International Consolidated 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 International Consolidated will offset losses from the drop in International Consolidated's long position.| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo Group |
| International Consolidated vs. Air France KLM SA | International Consolidated vs. Air France KLM | International Consolidated vs. Finnair Oyj | International Consolidated vs. AirAsia Group Berhad |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |