Correlation Between Sixt Leasing and IMPACT SILVER
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and IMPACT SILVER 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 IMPACT SILVER 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 IMPACT SILVER, you can compare the effects of market volatilities on Sixt Leasing and IMPACT SILVER 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 IMPACT SILVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and IMPACT SILVER.
Diversification Opportunities for Sixt Leasing and IMPACT SILVER
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sixt and IMPACT is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and IMPACT SILVER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMPACT SILVER 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 IMPACT SILVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMPACT SILVER has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and IMPACT SILVER go up and down completely randomly.
Pair Corralation between Sixt Leasing and IMPACT SILVER
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 0.39 times more return on investment than IMPACT SILVER. However, Sixt Leasing SE is 2.53 times less risky than IMPACT SILVER. It trades about -0.02 of its potential returns per unit of risk. IMPACT SILVER is currently generating about -0.01 per unit of risk. If you would invest 1,161 in Sixt Leasing SE on December 6, 2024 and sell it today you would lose (226.00) from holding Sixt Leasing SE or give up 19.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. IMPACT SILVER
Performance |
| Timeline |
| Sixt Leasing SE |
| IMPACT SILVER |
Sixt Leasing and IMPACT SILVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and IMPACT SILVER
The main advantage of trading using opposite Sixt Leasing and IMPACT SILVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, IMPACT SILVER 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 IMPACT SILVER will offset losses from the drop in IMPACT SILVER's long position.| Sixt Leasing vs. tokentus investment AG | Sixt Leasing vs. PennyMac Mortgage Investment | Sixt Leasing vs. RESMINING UNSPADR10 | Sixt Leasing vs. GOLDQUEST MINING |
| IMPACT SILVER vs. SCANSOURCE | IMPACT SILVER vs. Monster Beverage Corp | IMPACT SILVER vs. Ebro Foods SA | IMPACT SILVER vs. MOLSON RS BEVERAGE |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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