Correlation Between Hyster Yale and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Saker Aviation 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 Saker Aviation 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 Saker Aviation Services, you can compare the effects of market volatilities on Hyster Yale and Saker Aviation 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 Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Saker Aviation.
Diversification Opportunities for Hyster Yale and Saker Aviation
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyster and Saker is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services 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 Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Hyster Yale i.e., Hyster Yale and Saker Aviation go up and down completely randomly.
Pair Corralation between Hyster Yale and Saker Aviation
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the Saker Aviation. But the stock apears to be less risky and, when comparing its historical volatility, Hyster Yale Materials Handling is 1.16 times less risky than Saker Aviation. The stock trades about -0.03 of its potential returns per unit of risk. The Saker Aviation Services is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 725.00 in Saker Aviation Services on November 28, 2024 and sell it today you would earn a total of 60.00 from holding Saker Aviation Services or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Saker Aviation Services
Performance |
| Timeline |
| Hyster Yale Materials |
| Saker Aviation Services |
Hyster Yale and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Saker Aviation
The main advantage of trading using opposite Hyster Yale and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo Group |
| Saker Aviation vs. Passur Aerospace | Saker Aviation vs. Table Trac | Saker Aviation vs. Optex Systems Holdings, |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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