Correlation Between Hyster-Yale Materials and XLMedia PLC
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and XLMedia PLC 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 Materials and XLMedia PLC 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 XLMedia PLC, you can compare the effects of market volatilities on Hyster-Yale Materials and XLMedia PLC 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 Materials with a short position of XLMedia PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and XLMedia PLC.
Diversification Opportunities for Hyster-Yale Materials and XLMedia PLC
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster-Yale and XLMedia is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and XLMedia PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XLMedia PLC and Hyster-Yale Materials 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 XLMedia PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XLMedia PLC has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and XLMedia PLC go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and XLMedia PLC
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 0.49 times more return on investment than XLMedia PLC. However, Hyster Yale Materials Handling is 2.04 times less risky than XLMedia PLC. It trades about 0.06 of its potential returns per unit of risk. XLMedia PLC is currently generating about 0.02 per unit of risk. If you would invest 2,512 in Hyster Yale Materials Handling on September 3, 2024 and sell it today you would earn a total of 2,738 from holding Hyster Yale Materials Handling or generate 109.0% 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. XLMedia PLC
Performance |
| Timeline |
| Hyster Yale Materials |
| XLMedia PLC |
Hyster-Yale Materials and XLMedia PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and XLMedia PLC
The main advantage of trading using opposite Hyster-Yale Materials and XLMedia PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, XLMedia PLC 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 XLMedia PLC will offset losses from the drop in XLMedia PLC's long position.| Hyster-Yale Materials vs. Superior Plus Corp | Hyster-Yale Materials vs. NMI Holdings | Hyster-Yale Materials vs. Origin Agritech | Hyster-Yale Materials vs. SIVERS SEMICONDUCTORS AB |
| XLMedia PLC vs. Nucletron Electronic Aktiengesellschaft | XLMedia PLC vs. JD SPORTS FASH | XLMedia PLC vs. AOI Electronics Co | XLMedia PLC vs. Universal Display |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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