Correlation Between Hyster Yale and Moog
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Moog 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 Moog 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 Moog Inc, you can compare the effects of market volatilities on Hyster Yale and Moog 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 Moog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Moog.
Diversification Opportunities for Hyster Yale and Moog
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyster and Moog is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Moog Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moog Inc 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 Moog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moog Inc has no effect on the direction of Hyster Yale i.e., Hyster Yale and Moog go up and down completely randomly.
Pair Corralation between Hyster Yale and Moog
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the Moog. In addition to that, Hyster Yale is 1.24 times more volatile than Moog Inc. It trades about -0.13 of its total potential returns per unit of risk. Moog Inc is currently generating about 0.26 per unit of volatility. If you would invest 18,836 in Moog Inc on September 1, 2024 and sell it today you would earn a total of 3,291 from holding Moog Inc or generate 17.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Moog Inc
Performance |
| Timeline |
| Hyster Yale Materials |
| Moog Inc |
Hyster Yale and Moog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Moog
The main advantage of trading using opposite Hyster Yale and Moog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Moog 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 Moog will offset losses from the drop in Moog's long position.| Hyster Yale vs. Astec Industries | Hyster Yale vs. Manitex International | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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