Correlation Between Hyster Yale and Talanx AG
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Talanx AG 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 Talanx AG 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 Talanx AG, you can compare the effects of market volatilities on Hyster Yale and Talanx AG 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 Talanx AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Talanx AG.
Diversification Opportunities for Hyster Yale and Talanx AG
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyster and Talanx is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Talanx AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Talanx AG 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 Talanx AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Talanx AG has no effect on the direction of Hyster Yale i.e., Hyster Yale and Talanx AG go up and down completely randomly.
Pair Corralation between Hyster Yale and Talanx AG
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 2.29 times more return on investment than Talanx AG. However, Hyster Yale is 2.29 times more volatile than Talanx AG. It trades about 0.05 of its potential returns per unit of risk. Talanx AG is currently generating about 0.11 per unit of risk. If you would invest 2,883 in Hyster Yale Materials Handling on November 19, 2024 and sell it today you would earn a total of 2,057 from holding Hyster Yale Materials Handling or generate 71.35% 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. Talanx AG
Performance |
| Timeline |
| Hyster Yale Materials |
| Talanx AG |
Hyster Yale and Talanx AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Talanx AG
The main advantage of trading using opposite Hyster Yale and Talanx AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Talanx AG 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 Talanx AG will offset losses from the drop in Talanx AG's long position.| Hyster Yale vs. COVIVIO HOTELS INH | Hyster Yale vs. Jacquet Metal Service | Hyster Yale vs. PPHE HOTEL GROUP | Hyster Yale vs. Zijin Mining Group |
| Talanx AG vs. Direct Line Insurance | Talanx AG vs. Singapore Telecommunications Limited | Talanx AG vs. OAKTRSPECLENDNEW | Talanx AG vs. ecotel communication ag |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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