Correlation Between Hyster-Yale Materials and Wabash National
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials and Wabash National 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 Wabash National 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 Wabash National, you can compare the effects of market volatilities on Hyster-Yale Materials and Wabash National 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 Wabash National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and Wabash National.
Diversification Opportunities for Hyster-Yale Materials and Wabash National
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hyster-Yale and Wabash is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Wabash National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wabash National 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 Wabash National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wabash National has no effect on the direction of Hyster-Yale Materials i.e., Hyster-Yale Materials and Wabash National go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and Wabash National
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 1.4 times more return on investment than Wabash National. However, Hyster-Yale Materials is 1.4 times more volatile than Wabash National. It trades about 0.04 of its potential returns per unit of risk. Wabash National is currently generating about 0.0 per unit of risk. If you would invest 4,385 in Hyster Yale Materials Handling on August 29, 2024 and sell it today you would earn a total of 815.00 from holding Hyster Yale Materials Handling or generate 18.59% 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. Wabash National
Performance |
| Timeline |
| Hyster Yale Materials |
| Wabash National |
Hyster-Yale Materials and Wabash National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and Wabash National
The main advantage of trading using opposite Hyster-Yale Materials and Wabash National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials position performs unexpectedly, Wabash National 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 Wabash National will offset losses from the drop in Wabash National'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 |
| Wabash National vs. KION Group AG | Wabash National vs. Hyster Yale Materials Handling | Wabash National vs. Superior Plus Corp | Wabash National vs. NMI Holdings |
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.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |