Correlation Between Sixt Leasing and FAST RETAIL
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and FAST RETAIL 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 FAST RETAIL 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 FAST RETAIL ADR, you can compare the effects of market volatilities on Sixt Leasing and FAST RETAIL 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 FAST RETAIL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and FAST RETAIL.
Diversification Opportunities for Sixt Leasing and FAST RETAIL
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sixt and FAST is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and FAST RETAIL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FAST RETAIL ADR 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 FAST RETAIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FAST RETAIL ADR has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and FAST RETAIL go up and down completely randomly.
Pair Corralation between Sixt Leasing and FAST RETAIL
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the FAST RETAIL. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.23 times less risky than FAST RETAIL. The stock trades about -0.02 of its potential returns per unit of risk. The FAST RETAIL ADR is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,765 in FAST RETAIL ADR on October 18, 2024 and sell it today you would earn a total of 1,235 from holding FAST RETAIL ADR or generate 69.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. FAST RETAIL ADR
Performance |
| Timeline |
| Sixt Leasing SE |
| FAST RETAIL ADR |
Sixt Leasing and FAST RETAIL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and FAST RETAIL
The main advantage of trading using opposite Sixt Leasing and FAST RETAIL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, FAST RETAIL 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 FAST RETAIL will offset losses from the drop in FAST RETAIL's long position.| Sixt Leasing vs. MAGNUM MINING EXP | Sixt Leasing vs. ARDAGH METAL PACDL 0001 | Sixt Leasing vs. Zoom Video Communications | Sixt Leasing vs. Perseus Mining Limited |
| FAST RETAIL vs. MAGIC SOFTWARE ENTR | FAST RETAIL vs. OPERA SOFTWARE | FAST RETAIL vs. Constellation Software | FAST RETAIL vs. PSI Software 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |