Correlation Between Hyster Yale and Shyft
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Shyft 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 Shyft 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 Shyft Group, you can compare the effects of market volatilities on Hyster Yale and Shyft 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 Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Shyft.
Diversification Opportunities for Hyster Yale and Shyft
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyster and Shyft is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Hyster Yale i.e., Hyster Yale and Shyft go up and down completely randomly.
Pair Corralation between Hyster Yale and Shyft
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the Shyft. But the stock apears to be less risky and, when comparing its historical volatility, Hyster Yale Materials Handling is 1.5 times less risky than Shyft. The stock trades about -0.07 of its potential returns per unit of risk. The Shyft Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,306 in Shyft Group on November 1, 2024 and sell it today you would lose (104.00) from holding Shyft Group or give up 7.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Shyft Group
Performance |
| Timeline |
| Hyster Yale Materials |
| Shyft Group |
Hyster Yale and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Shyft
The main advantage of trading using opposite Hyster Yale and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft's long position.| Hyster Yale vs. CEA Industries | Hyster Yale vs. Thayer Ventures Acquisition | Hyster Yale vs. Iveda Solutions Warrant | Hyster Yale vs. Aquagold International |
| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Rev Group | Shyft vs. Lindsay |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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