Correlation Between Hyster-Yale Materials and BRIT AMER
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and BRIT AMER 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 BRIT AMER 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 BRIT AMER TOBACCO, you can compare the effects of market volatilities on Hyster-Yale Materials and BRIT AMER 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 BRIT AMER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and BRIT AMER.
Diversification Opportunities for Hyster-Yale Materials and BRIT AMER
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster-Yale and BRIT is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and BRIT AMER TOBACCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRIT AMER TOBACCO 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 BRIT AMER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRIT AMER TOBACCO has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and BRIT AMER go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and BRIT AMER
Assuming the 90 days trading horizon Hyster-Yale Materials is expected to generate 2.5 times less return on investment than BRIT AMER. In addition to that, Hyster-Yale Materials is 1.08 times more volatile than BRIT AMER TOBACCO. It trades about 0.15 of its total potential returns per unit of risk. BRIT AMER TOBACCO is currently generating about 0.4 per unit of volatility. If you would invest 3,551 in BRIT AMER TOBACCO on November 9, 2024 and sell it today you would earn a total of 436.00 from holding BRIT AMER TOBACCO or generate 12.28% 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. BRIT AMER TOBACCO
Performance |
| Timeline |
| Hyster Yale Materials |
| BRIT AMER TOBACCO |
Hyster-Yale Materials and BRIT AMER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and BRIT AMER
The main advantage of trading using opposite Hyster-Yale Materials and BRIT AMER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, BRIT AMER 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 BRIT AMER will offset losses from the drop in BRIT AMER's long position.| Hyster-Yale Materials vs. Nok Airlines PCL | Hyster-Yale Materials vs. American Airlines Group | Hyster-Yale Materials vs. AEGEAN AIRLINES | Hyster-Yale Materials vs. ALERION CLEANPOWER |
| BRIT AMER vs. GEELY AUTOMOBILE | BRIT AMER vs. MCEWEN MINING INC | BRIT AMER vs. MAGNUM MINING EXP | BRIT AMER vs. Evolution Mining Limited |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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