Correlation Between Hyster-Yale Materials and Enel SpA
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and Enel SpA 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 Enel SpA 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 Enel SpA, you can compare the effects of market volatilities on Hyster-Yale Materials and Enel SpA 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 Enel SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and Enel SpA.
Diversification Opportunities for Hyster-Yale Materials and Enel SpA
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hyster-Yale and Enel is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Enel SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enel SpA 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 Enel SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enel SpA has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and Enel SpA go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and Enel SpA
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 2.84 times more return on investment than Enel SpA. However, Hyster-Yale Materials is 2.84 times more volatile than Enel SpA. It trades about 0.06 of its potential returns per unit of risk. Enel SpA is currently generating about 0.08 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Enel SpA
Performance |
| Timeline |
| Hyster Yale Materials |
| Enel SpA |
Hyster-Yale Materials and Enel SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and Enel SpA
The main advantage of trading using opposite Hyster-Yale Materials and Enel SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, Enel SpA 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 Enel SpA will offset losses from the drop in Enel SpA'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 |
| Enel SpA vs. Pembina Pipeline Corp | Enel SpA vs. CN MODERN DAIRY | Enel SpA vs. American Eagle Outfitters | Enel SpA vs. Tyson Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |