Correlation Between Hyster-Yale Materials and COSTAR GROUP
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and COSTAR GROUP 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 COSTAR GROUP 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 COSTAR GROUP INC, you can compare the effects of market volatilities on Hyster-Yale Materials and COSTAR GROUP 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 COSTAR GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and COSTAR GROUP.
Diversification Opportunities for Hyster-Yale Materials and COSTAR GROUP
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster-Yale and COSTAR is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and COSTAR GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSTAR GROUP INC 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 COSTAR GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSTAR GROUP INC has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and COSTAR GROUP go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and COSTAR GROUP
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to under-perform the COSTAR GROUP. In addition to that, Hyster-Yale Materials is 1.71 times more volatile than COSTAR GROUP INC. It trades about -0.12 of its total potential returns per unit of risk. COSTAR GROUP INC is currently generating about 0.22 per unit of volatility. If you would invest 6,831 in COSTAR GROUP INC on August 29, 2024 and sell it today you would earn a total of 783.00 from holding COSTAR GROUP INC or generate 11.46% 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. COSTAR GROUP INC
Performance |
| Timeline |
| Hyster Yale Materials |
| COSTAR GROUP INC |
Hyster-Yale Materials and COSTAR GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and COSTAR GROUP
The main advantage of trading using opposite Hyster-Yale Materials and COSTAR GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, COSTAR GROUP 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 COSTAR GROUP will offset losses from the drop in COSTAR GROUP's long position.| Hyster-Yale Materials vs. KION Group AG | Hyster-Yale Materials vs. Superior Plus Corp | Hyster-Yale Materials vs. NMI Holdings | Hyster-Yale Materials vs. Origin Agritech |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |