Correlation Between Hyster Yale and Bollor SE
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Bollor SE 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 Bollor SE 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 Bollor SE, you can compare the effects of market volatilities on Hyster Yale and Bollor SE 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 Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Bollor SE.
Diversification Opportunities for Hyster Yale and Bollor SE
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hyster and Bollor is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE 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 Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of Hyster Yale i.e., Hyster Yale and Bollor SE go up and down completely randomly.
Pair Corralation between Hyster Yale and Bollor SE
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 1.54 times more return on investment than Bollor SE. However, Hyster Yale is 1.54 times more volatile than Bollor SE. It trades about 0.1 of its potential returns per unit of risk. Bollor SE is currently generating about 0.11 per unit of risk. If you would invest 4,947 in Hyster Yale Materials Handling on September 13, 2024 and sell it today you would earn a total of 203.00 from holding Hyster Yale Materials Handling or generate 4.1% return on investment 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. Bollor SE
Performance |
| Timeline |
| Hyster Yale Materials |
| Bollor SE |
Hyster Yale and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Bollor SE
The main advantage of trading using opposite Hyster Yale and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.| Hyster Yale vs. OURGAME INTHOLDL 00005 | Hyster Yale vs. Media and Games | Hyster Yale vs. American Eagle Outfitters | Hyster Yale vs. GigaMedia |
| Bollor SE vs. EAT WELL INVESTMENT | Bollor SE vs. REINET INVESTMENTS SCA | Bollor SE vs. Magic Software Enterprises | Bollor SE vs. CPU SOFTWAREHOUSE |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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