Correlation Between Lindsay and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Lindsay and Hyster Yale 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 Lindsay and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindsay and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Lindsay and Hyster Yale 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 Lindsay with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindsay and Hyster Yale.
Diversification Opportunities for Lindsay and Hyster Yale
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lindsay and Hyster is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lindsay and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials and Lindsay 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 Lindsay are associated (or correlated) with Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Lindsay i.e., Lindsay and Hyster Yale go up and down completely randomly.
Pair Corralation between Lindsay and Hyster Yale
Considering the 90-day investment horizon Lindsay is expected to generate 1.03 times more return on investment than Hyster Yale. However, Lindsay is 1.03 times more volatile than Hyster Yale Materials Handling. It trades about 0.49 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.23 per unit of risk. If you would invest 11,831 in Lindsay on November 1, 2024 and sell it today you would earn a total of 1,790 from holding Lindsay or generate 15.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindsay vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Lindsay |
| Hyster Yale Materials |
Lindsay and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindsay and Hyster Yale
The main advantage of trading using opposite Lindsay and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindsay position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Lindsay vs. Columbus McKinnon | Lindsay vs. Astec Industries | Lindsay vs. Shyft Group | Lindsay vs. AGCO Corporation |
| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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