Correlation Between Sixt Leasing and MIRAMAR HOTEL
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and MIRAMAR HOTEL 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 MIRAMAR HOTEL 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 MIRAMAR HOTEL INV, you can compare the effects of market volatilities on Sixt Leasing and MIRAMAR HOTEL 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 MIRAMAR HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and MIRAMAR HOTEL.
Diversification Opportunities for Sixt Leasing and MIRAMAR HOTEL
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and MIRAMAR is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and MIRAMAR HOTEL INV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRAMAR HOTEL INV 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 MIRAMAR HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRAMAR HOTEL INV has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and MIRAMAR HOTEL go up and down completely randomly.
Pair Corralation between Sixt Leasing and MIRAMAR HOTEL
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the MIRAMAR HOTEL. In addition to that, Sixt Leasing is 3.23 times more volatile than MIRAMAR HOTEL INV. It trades about -0.2 of its total potential returns per unit of risk. MIRAMAR HOTEL INV is currently generating about 0.07 per unit of volatility. If you would invest 112.00 in MIRAMAR HOTEL INV on August 25, 2024 and sell it today you would earn a total of 1.00 from holding MIRAMAR HOTEL INV or generate 0.89% 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. MIRAMAR HOTEL INV
Performance |
| Timeline |
| Sixt Leasing SE |
| MIRAMAR HOTEL INV |
Sixt Leasing and MIRAMAR HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and MIRAMAR HOTEL
The main advantage of trading using opposite Sixt Leasing and MIRAMAR HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, MIRAMAR HOTEL 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 MIRAMAR HOTEL will offset losses from the drop in MIRAMAR HOTEL's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc | MIRAMAR HOTEL vs. Apple Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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