Correlation Between Transport International and Sixt SE
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By analyzing existing cross correlation between Transport International Holdings and Sixt SE, you can compare the effects of market volatilities on Transport International and Sixt SE 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 Transport International with a short position of Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transport International and Sixt SE.
Diversification Opportunities for Transport International and Sixt SE
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Transport and Sixt is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Transport International Holdin and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE and Transport International 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 Transport International Holdings are associated (or correlated) with Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Transport International i.e., Transport International and Sixt SE go up and down completely randomly.
Pair Corralation between Transport International and Sixt SE
Assuming the 90 days horizon Transport International is expected to generate 4.48 times less return on investment than Sixt SE. But when comparing it to its historical volatility, Transport International Holdings is 1.1 times less risky than Sixt SE. It trades about 0.03 of its potential returns per unit of risk. Sixt SE is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6,130 in Sixt SE on September 12, 2024 and sell it today you would earn a total of 1,270 from holding Sixt SE or generate 20.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Transport International Holdin vs. Sixt SE
Performance |
| Timeline |
| Transport International |
| Sixt SE |
Transport International and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transport International and Sixt SE
The main advantage of trading using opposite Transport International and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transport International position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.| Transport International vs. CSX Corporation | Transport International vs. Westinghouse Air Brake | Transport International vs. Superior Plus Corp | Transport International vs. SIVERS SEMICONDUCTORS AB |
| Sixt SE vs. MOLSON RS BEVERAGE | Sixt SE vs. THAI BEVERAGE | Sixt SE vs. Treasury Wine Estates | Sixt SE vs. Marie Brizard Wine |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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