Correlation Between Sixt Leasing and Hercules Capital
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Hercules Capital 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 Sixt Leasing and Hercules Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt Leasing SE and Hercules Capital, you can compare the effects of market volatilities on Sixt Leasing and Hercules Capital 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 Sixt Leasing with a short position of Hercules Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Hercules Capital.
Diversification Opportunities for Sixt Leasing and Hercules Capital
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Hercules is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Hercules Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hercules Capital and Sixt Leasing 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 Sixt Leasing SE are associated (or correlated) with Hercules Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hercules Capital has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Hercules Capital go up and down completely randomly.
Pair Corralation between Sixt Leasing and Hercules Capital
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 1.8 times more return on investment than Hercules Capital. However, Sixt Leasing is 1.8 times more volatile than Hercules Capital. It trades about 0.06 of its potential returns per unit of risk. Hercules Capital is currently generating about 0.08 per unit of risk. If you would invest 920.00 in Sixt Leasing SE on September 25, 2024 and sell it today you would earn a total of 20.00 from holding Sixt Leasing SE or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sixt Leasing SE vs. Hercules Capital
Performance |
| Timeline |
| Sixt Leasing SE |
| Hercules Capital |
Sixt Leasing and Hercules Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Hercules Capital
The main advantage of trading using opposite Sixt Leasing and Hercules Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Hercules Capital 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 Hercules Capital will offset losses from the drop in Hercules Capital's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| Hercules Capital vs. HEMISPHERE EGY | Hercules Capital vs. Spirent Communications plc | Hercules Capital vs. Sixt Leasing SE | Hercules Capital vs. United Internet 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |