Correlation Between Sixt Leasing and Advanced Micro
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Advanced Micro 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 Advanced Micro 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 Advanced Micro Devices, you can compare the effects of market volatilities on Sixt Leasing and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Advanced Micro.
Diversification Opportunities for Sixt Leasing and Advanced Micro
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sixt and Advanced is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Advanced Micro Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Devices 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Devices has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Advanced Micro go up and down completely randomly.
Pair Corralation between Sixt Leasing and Advanced Micro
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 1.16 times more return on investment than Advanced Micro. However, Sixt Leasing is 1.16 times more volatile than Advanced Micro Devices. It trades about -0.04 of its potential returns per unit of risk. Advanced Micro Devices is currently generating about -0.21 per unit of risk. If you would invest 985.00 in Sixt Leasing SE on September 12, 2024 and sell it today you would lose (25.00) from holding Sixt Leasing SE or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. Advanced Micro Devices
Performance |
| Timeline |
| Sixt Leasing SE |
| Advanced Micro Devices |
Sixt Leasing and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Advanced Micro
The main advantage of trading using opposite Sixt Leasing and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| Advanced Micro vs. XLMedia PLC | Advanced Micro vs. TOWNSQUARE MEDIA INC | Advanced Micro vs. SENECA FOODS A | Advanced Micro vs. Hollywood Bowl Group |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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