Correlation Between Sixt Leasing and Gemfields Group
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Gemfields Group 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 Gemfields Group 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 Gemfields Group Limited, you can compare the effects of market volatilities on Sixt Leasing and Gemfields Group 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 Gemfields Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Gemfields Group.
Diversification Opportunities for Sixt Leasing and Gemfields Group
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sixt and Gemfields is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Gemfields Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemfields Group 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 Gemfields Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemfields Group has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Gemfields Group go up and down completely randomly.
Pair Corralation between Sixt Leasing and Gemfields Group
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Gemfields Group. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 2.87 times less risky than Gemfields Group. The stock trades about -0.02 of its potential returns per unit of risk. The Gemfields Group Limited is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Gemfields Group Limited on October 14, 2024 and sell it today you would lose (7.50) from holding Gemfields Group Limited or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. Gemfields Group Limited
Performance |
| Timeline |
| Sixt Leasing SE |
| Gemfields Group |
Sixt Leasing and Gemfields Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Gemfields Group
The main advantage of trading using opposite Sixt Leasing and Gemfields Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Gemfields Group 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 Gemfields Group will offset losses from the drop in Gemfields Group's long position.| Sixt Leasing vs. Tower Semiconductor | Sixt Leasing vs. BE Semiconductor Industries | Sixt Leasing vs. Ryanair Holdings plc | Sixt Leasing vs. SEALED AIR |
| Gemfields Group vs. Sixt Leasing SE | Gemfields Group vs. MidCap Financial Investment | Gemfields Group vs. USU Software AG | Gemfields Group vs. ALBIS LEASING 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |