Correlation Between Sixt Leasing and Commonwealth Bank
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Commonwealth Bank 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 Commonwealth Bank 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 Commonwealth Bank of, you can compare the effects of market volatilities on Sixt Leasing and Commonwealth Bank 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 Commonwealth Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Commonwealth Bank.
Diversification Opportunities for Sixt Leasing and Commonwealth Bank
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and Commonwealth is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Commonwealth Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Bank 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 Commonwealth Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Bank has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Commonwealth Bank go up and down completely randomly.
Pair Corralation between Sixt Leasing and Commonwealth Bank
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Commonwealth Bank. In addition to that, Sixt Leasing is 1.55 times more volatile than Commonwealth Bank of. It trades about -0.18 of its total potential returns per unit of risk. Commonwealth Bank of is currently generating about 0.52 per unit of volatility. If you would invest 8,699 in Commonwealth Bank of on August 28, 2024 and sell it today you would earn a total of 1,197 from holding Commonwealth Bank of or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. Commonwealth Bank of
Performance |
| Timeline |
| Sixt Leasing SE |
| Commonwealth Bank |
Sixt Leasing and Commonwealth Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Commonwealth Bank
The main advantage of trading using opposite Sixt Leasing and Commonwealth Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Commonwealth Bank 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 Commonwealth Bank will offset losses from the drop in Commonwealth Bank's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| Commonwealth Bank vs. Superior Plus Corp | Commonwealth Bank vs. NMI Holdings | Commonwealth Bank vs. Origin Agritech | Commonwealth Bank vs. SIVERS SEMICONDUCTORS AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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