Correlation Between Hyster-Yale Materials and MEITUAN UNSPADR/2B
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR2B, you can compare the effects of market volatilities on Hyster-Yale Materials and MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and MEITUAN UNSPADR/2B.
Diversification Opportunities for Hyster-Yale Materials and MEITUAN UNSPADR/2B
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hyster-Yale and MEITUAN is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and MEITUAN UNSPADR2B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEITUAN UNSPADR/2B has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and MEITUAN UNSPADR/2B go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and MEITUAN UNSPADR/2B
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to under-perform the MEITUAN UNSPADR/2B. But the stock apears to be less risky and, when comparing its historical volatility, Hyster Yale Materials Handling is 1.4 times less risky than MEITUAN UNSPADR/2B. The stock trades about -0.04 of its potential returns per unit of risk. The MEITUAN UNSPADR2B is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,440 in MEITUAN UNSPADR2B on September 1, 2024 and sell it today you would earn a total of 1,640 from holding MEITUAN UNSPADR2B or generate 67.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. MEITUAN UNSPADR2B
Performance |
| Timeline |
| Hyster Yale Materials |
| MEITUAN UNSPADR/2B |
Hyster-Yale Materials and MEITUAN UNSPADR/2B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and MEITUAN UNSPADR/2B
The main advantage of trading using opposite Hyster-Yale Materials and MEITUAN UNSPADR/2B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, MEITUAN UNSPADR/2B 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 MEITUAN UNSPADR/2B will offset losses from the drop in MEITUAN UNSPADR/2B'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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