Correlation Between Sixt Leasing and HYATT HOTELS
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and HYATT HOTELS 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 HYATT HOTELS 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 HYATT HOTELS A, you can compare the effects of market volatilities on Sixt Leasing and HYATT HOTELS 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 HYATT HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and HYATT HOTELS.
Diversification Opportunities for Sixt Leasing and HYATT HOTELS
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and HYATT is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and HYATT HOTELS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYATT HOTELS A 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 HYATT HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYATT HOTELS A has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and HYATT HOTELS go up and down completely randomly.
Pair Corralation between Sixt Leasing and HYATT HOTELS
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the HYATT HOTELS. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.25 times less risky than HYATT HOTELS. The stock trades about -0.2 of its potential returns per unit of risk. The HYATT HOTELS A is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 15,225 in HYATT HOTELS A on October 15, 2024 and sell it today you would lose (465.00) from holding HYATT HOTELS A or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. HYATT HOTELS A
Performance |
| Timeline |
| Sixt Leasing SE |
| HYATT HOTELS A |
Sixt Leasing and HYATT HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and HYATT HOTELS
The main advantage of trading using opposite Sixt Leasing and HYATT HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, HYATT HOTELS 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 HYATT HOTELS will offset losses from the drop in HYATT HOTELS's long position.| Sixt Leasing vs. Titan Machinery | Sixt Leasing vs. Compagnie Plastic Omnium | Sixt Leasing vs. APPLIED MATERIALS | Sixt Leasing vs. GOODYEAR T RUBBER |
| HYATT HOTELS vs. Air Lease | HYATT HOTELS vs. FIREWEED METALS P | HYATT HOTELS vs. NEWELL RUBBERMAID | HYATT HOTELS vs. Sixt Leasing SE |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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