Correlation Between Sixt Leasing and PACIFIC ONLINE
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and PACIFIC ONLINE 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 PACIFIC ONLINE 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 PACIFIC ONLINE, you can compare the effects of market volatilities on Sixt Leasing and PACIFIC ONLINE 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 PACIFIC ONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and PACIFIC ONLINE.
Diversification Opportunities for Sixt Leasing and PACIFIC ONLINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and PACIFIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and PACIFIC ONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC ONLINE 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 PACIFIC ONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC ONLINE has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and PACIFIC ONLINE go up and down completely randomly.
Pair Corralation between Sixt Leasing and PACIFIC ONLINE
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the PACIFIC ONLINE. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.37 times less risky than PACIFIC ONLINE. The stock trades about -0.02 of its potential returns per unit of risk. The PACIFIC ONLINE is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10.00 in PACIFIC ONLINE on October 16, 2024 and sell it today you would earn a total of 5.00 from holding PACIFIC ONLINE or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. PACIFIC ONLINE
Performance |
| Timeline |
| Sixt Leasing SE |
| PACIFIC ONLINE |
Sixt Leasing and PACIFIC ONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and PACIFIC ONLINE
The main advantage of trading using opposite Sixt Leasing and PACIFIC ONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, PACIFIC ONLINE 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 PACIFIC ONLINE will offset losses from the drop in PACIFIC ONLINE's long position.| Sixt Leasing vs. GLOBUS MEDICAL A | Sixt Leasing vs. Sch Environnement SA | Sixt Leasing vs. Xiwang Special Steel | Sixt Leasing vs. ANGANG STEEL H |
| PACIFIC ONLINE vs. PLANT VEDA FOODS | PACIFIC ONLINE vs. GWILLI FOOD | PACIFIC ONLINE vs. Lendlease Group | PACIFIC ONLINE 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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