Correlation Between Sixt Leasing and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and MEDICAL FACILITIES 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 MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on Sixt Leasing and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and MEDICAL FACILITIES.
Diversification Opportunities for Sixt Leasing and MEDICAL FACILITIES
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and MEDICAL is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between Sixt Leasing and MEDICAL FACILITIES
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the MEDICAL FACILITIES. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 2.58 times less risky than MEDICAL FACILITIES. The stock trades about -0.04 of its potential returns per unit of risk. The MEDICAL FACILITIES NEW is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 519.00 in MEDICAL FACILITIES NEW on September 12, 2024 and sell it today you would earn a total of 501.00 from holding MEDICAL FACILITIES NEW or generate 96.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| Sixt Leasing SE |
| MEDICAL FACILITIES NEW |
Sixt Leasing and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and MEDICAL FACILITIES
The main advantage of trading using opposite Sixt Leasing and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| MEDICAL FACILITIES vs. Ramsay Health Care | MEDICAL FACILITIES vs. Universal Health Services | MEDICAL FACILITIES vs. Superior Plus Corp | MEDICAL FACILITIES vs. SIVERS SEMICONDUCTORS AB |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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