Correlation Between Sixt Leasing and Information Services
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Information Services 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 Information Services 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 Information Services International Dentsu, you can compare the effects of market volatilities on Sixt Leasing and Information Services 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 Information Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Information Services.
Diversification Opportunities for Sixt Leasing and Information Services
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Information is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Information Services Internati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Information Services 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 Information Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Information Services has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Information Services go up and down completely randomly.
Pair Corralation between Sixt Leasing and Information Services
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Information Services. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.62 times less risky than Information Services. The stock trades about -0.05 of its potential returns per unit of risk. The Information Services International Dentsu is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,640 in Information Services International Dentsu on November 9, 2024 and sell it today you would earn a total of 200.00 from holding Information Services International Dentsu or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. Information Services Internati
Performance |
| Timeline |
| Sixt Leasing SE |
| Information Services |
Sixt Leasing and Information Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Information Services
The main advantage of trading using opposite Sixt Leasing and Information Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Information Services 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 Information Services will offset losses from the drop in Information Services' long position.| Sixt Leasing vs. Bio Techne Corp | Sixt Leasing vs. Corsair Gaming | Sixt Leasing vs. Norwegian Air Shuttle | Sixt Leasing vs. AIR LIQUIDE ADR |
| Information Services vs. Easy Software AG | Information Services vs. Harmony Gold Mining | Information Services vs. ADRIATIC METALS LS 013355 | Information Services vs. GREENX METALS LTD |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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