Correlation Between Sixt Leasing and DETALION GAMES
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and DETALION GAMES 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 DETALION GAMES 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 DETALION GAMES SA, you can compare the effects of market volatilities on Sixt Leasing and DETALION GAMES 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 DETALION GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and DETALION GAMES.
Diversification Opportunities for Sixt Leasing and DETALION GAMES
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sixt and DETALION is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and DETALION GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DETALION GAMES SA 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 DETALION GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DETALION GAMES SA has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and DETALION GAMES go up and down completely randomly.
Pair Corralation between Sixt Leasing and DETALION GAMES
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 0.45 times more return on investment than DETALION GAMES. However, Sixt Leasing SE is 2.24 times less risky than DETALION GAMES. It trades about -0.03 of its potential returns per unit of risk. DETALION GAMES SA is currently generating about -0.11 per unit of risk. If you would invest 1,041 in Sixt Leasing SE on September 22, 2024 and sell it today you would lose (91.00) from holding Sixt Leasing SE or give up 8.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. DETALION GAMES SA
Performance |
| Timeline |
| Sixt Leasing SE |
| DETALION GAMES SA |
Sixt Leasing and DETALION GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and DETALION GAMES
The main advantage of trading using opposite Sixt Leasing and DETALION GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, DETALION GAMES 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 DETALION GAMES will offset losses from the drop in DETALION GAMES's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| DETALION GAMES vs. Eidesvik Offshore ASA | DETALION GAMES vs. NISSAN CHEMICAL IND | DETALION GAMES vs. Sixt Leasing SE | DETALION GAMES vs. Mitsubishi Gas Chemical |
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 CEOs Directory module to screen CEOs from public companies around the world.
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