Correlation Between Sixt Leasing and HEMISPHERE EGY

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Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and HEMISPHERE EGY 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 HEMISPHERE EGY 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 HEMISPHERE EGY, you can compare the effects of market volatilities on Sixt Leasing and HEMISPHERE EGY 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 HEMISPHERE EGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and HEMISPHERE EGY.

Diversification Opportunities for Sixt Leasing and HEMISPHERE EGY

-0.2
  Correlation Coefficient

Good diversification

The 3 months correlation between Sixt and HEMISPHERE is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and HEMISPHERE EGY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEMISPHERE EGY 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 HEMISPHERE EGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEMISPHERE EGY has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and HEMISPHERE EGY go up and down completely randomly.

Pair Corralation between Sixt Leasing and HEMISPHERE EGY

Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 1.62 times more return on investment than HEMISPHERE EGY. However, Sixt Leasing is 1.62 times more volatile than HEMISPHERE EGY. It trades about 0.06 of its potential returns per unit of risk. HEMISPHERE EGY is currently generating about -0.11 per unit of risk. If you would invest  920.00  in Sixt Leasing SE on September 25, 2024 and sell it today you would earn a total of  20.00  from holding Sixt Leasing SE or generate 2.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sixt Leasing SE  vs.  HEMISPHERE EGY

 Performance 
       Timeline  
Sixt Leasing SE 

Risk-Adjusted Performance

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Over the last 90 days Sixt Leasing SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
HEMISPHERE EGY 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in HEMISPHERE EGY are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, HEMISPHERE EGY is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Sixt Leasing and HEMISPHERE EGY Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sixt Leasing and HEMISPHERE EGY

The main advantage of trading using opposite Sixt Leasing and HEMISPHERE EGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, HEMISPHERE EGY 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 HEMISPHERE EGY will offset losses from the drop in HEMISPHERE EGY's long position.
The idea behind Sixt Leasing SE and HEMISPHERE EGY pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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