Correlation Between Hyster-Yale Materials and Grand Canyon
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and Grand Canyon 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 Grand Canyon 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 Grand Canyon Education, you can compare the effects of market volatilities on Hyster-Yale Materials and Grand Canyon 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 Grand Canyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and Grand Canyon.
Diversification Opportunities for Hyster-Yale Materials and Grand Canyon
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyster-Yale and Grand is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Grand Canyon Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Canyon Education 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 Grand Canyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Canyon Education has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and Grand Canyon go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and Grand Canyon
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 1.7 times more return on investment than Grand Canyon. However, Hyster-Yale Materials is 1.7 times more volatile than Grand Canyon Education. It trades about 0.04 of its potential returns per unit of risk. Grand Canyon Education is currently generating about 0.06 per unit of risk. If you would invest 4,208 in Hyster Yale Materials Handling on August 26, 2024 and sell it today you would earn a total of 992.00 from holding Hyster Yale Materials Handling or generate 23.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Grand Canyon Education
Performance |
| Timeline |
| Hyster Yale Materials |
| Grand Canyon Education |
Hyster-Yale Materials and Grand Canyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and Grand Canyon
The main advantage of trading using opposite Hyster-Yale Materials and Grand Canyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, Grand Canyon 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 Grand Canyon will offset losses from the drop in Grand Canyon's long position.| Hyster-Yale Materials vs. KION Group AG | Hyster-Yale Materials vs. Sinotruk Limited | Hyster-Yale Materials vs. Superior Plus Corp | Hyster-Yale Materials vs. NMI Holdings |
| Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc | Grand Canyon vs. Apple Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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