Correlation Between Hyster-Yale Materials and Shyft
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and Shyft 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 Shyft 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 The Shyft Group, you can compare the effects of market volatilities on Hyster-Yale Materials and Shyft 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 Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and Shyft.
Diversification Opportunities for Hyster-Yale Materials and Shyft
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyster-Yale and Shyft is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and The Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and Shyft go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and Shyft
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to under-perform the Shyft. In addition to that, Hyster-Yale Materials is 1.03 times more volatile than The Shyft Group. It trades about -0.09 of its total potential returns per unit of risk. The Shyft Group is currently generating about 0.19 per unit of volatility. If you would invest 1,146 in The Shyft Group on September 1, 2024 and sell it today you would earn a total of 184.00 from holding The Shyft Group or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. The Shyft Group
Performance |
| Timeline |
| Hyster Yale Materials |
| Shyft Group |
Hyster-Yale Materials and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and Shyft
The main advantage of trading using opposite Hyster-Yale Materials and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft'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 |
| Shyft vs. Superior Plus Corp | Shyft vs. NMI Holdings | Shyft vs. Origin Agritech | Shyft vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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