Correlation Between Sixt Leasing and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Carlsberg 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 Carlsberg 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 Carlsberg AS, you can compare the effects of market volatilities on Sixt Leasing and Carlsberg 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 Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Carlsberg.
Diversification Opportunities for Sixt Leasing and Carlsberg
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sixt and Carlsberg is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS 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 Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Carlsberg go up and down completely randomly.
Pair Corralation between Sixt Leasing and Carlsberg
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Carlsberg. In addition to that, Sixt Leasing is 1.24 times more volatile than Carlsberg AS. It trades about -0.2 of its total potential returns per unit of risk. Carlsberg AS is currently generating about -0.22 per unit of volatility. If you would invest 10,500 in Carlsberg AS on August 25, 2024 and sell it today you would lose (794.00) from holding Carlsberg AS or give up 7.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sixt Leasing SE vs. Carlsberg AS
Performance |
| Timeline |
| Sixt Leasing SE |
| Carlsberg AS |
Sixt Leasing and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Carlsberg
The main advantage of trading using opposite Sixt Leasing and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| Carlsberg vs. Sixt Leasing SE | Carlsberg vs. UNITED RENTALS | Carlsberg vs. SK TELECOM TDADR | Carlsberg vs. Gamma Communications plc |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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