Correlation Between Sixt Leasing and Hochschild Mining
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Hochschild Mining 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 Hochschild Mining 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 Hochschild Mining plc, you can compare the effects of market volatilities on Sixt Leasing and Hochschild Mining 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 Hochschild Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Hochschild Mining.
Diversification Opportunities for Sixt Leasing and Hochschild Mining
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sixt and Hochschild is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Hochschild Mining plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hochschild Mining plc 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 Hochschild Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hochschild Mining plc has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Hochschild Mining go up and down completely randomly.
Pair Corralation between Sixt Leasing and Hochschild Mining
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 0.34 times more return on investment than Hochschild Mining. However, Sixt Leasing SE is 2.95 times less risky than Hochschild Mining. It trades about 0.01 of its potential returns per unit of risk. Hochschild Mining plc is currently generating about -0.13 per unit of risk. If you would invest 925.00 in Sixt Leasing SE on October 30, 2024 and sell it today you would earn a total of 0.00 from holding Sixt Leasing SE or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. Hochschild Mining plc
Performance |
| Timeline |
| Sixt Leasing SE |
| Hochschild Mining plc |
Sixt Leasing and Hochschild Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Hochschild Mining
The main advantage of trading using opposite Sixt Leasing and Hochschild Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Hochschild Mining 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 Hochschild Mining will offset losses from the drop in Hochschild Mining's long position.| Sixt Leasing vs. GOME Retail Holdings | Sixt Leasing vs. Summit Hotel Properties | Sixt Leasing vs. Costco Wholesale Corp | Sixt Leasing vs. Meli Hotels International |
| Hochschild Mining vs. American Airlines Group | Hochschild Mining vs. International Consolidated Airlines | Hochschild Mining vs. SINGAPORE AIRLINES | Hochschild Mining vs. COFCO Joycome Foods |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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