Correlation Between Hyster Yale and Rev
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Rev 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 Rev 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 Rev Group, you can compare the effects of market volatilities on Hyster Yale and Rev 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 Rev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Rev.
Diversification Opportunities for Hyster Yale and Rev
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster and Rev is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Rev Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rev Group 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 Rev. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rev Group has no effect on the direction of Hyster Yale i.e., Hyster Yale and Rev go up and down completely randomly.
Pair Corralation between Hyster Yale and Rev
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to generate 0.53 times more return on investment than Rev. However, Hyster Yale Materials Handling is 1.89 times less risky than Rev. It trades about 0.36 of its potential returns per unit of risk. Rev Group is currently generating about 0.17 per unit of risk. If you would invest 4,977 in Hyster Yale Materials Handling on October 20, 2024 and sell it today you would earn a total of 410.00 from holding Hyster Yale Materials Handling or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Rev Group
Performance |
| Timeline |
| Hyster Yale Materials |
| Rev Group |
Hyster Yale and Rev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Rev
The main advantage of trading using opposite Hyster Yale and Rev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Rev 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 Rev will offset losses from the drop in Rev's long position.| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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