Correlation Between Sixt Leasing and INSURANCE AUST
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and INSURANCE AUST 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 INSURANCE AUST 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 INSURANCE AUST GRP, you can compare the effects of market volatilities on Sixt Leasing and INSURANCE AUST 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 INSURANCE AUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and INSURANCE AUST.
Diversification Opportunities for Sixt Leasing and INSURANCE AUST
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sixt and INSURANCE is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and INSURANCE AUST GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INSURANCE AUST GRP 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 INSURANCE AUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INSURANCE AUST GRP has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and INSURANCE AUST go up and down completely randomly.
Pair Corralation between Sixt Leasing and INSURANCE AUST
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 0.24 times more return on investment than INSURANCE AUST. However, Sixt Leasing SE is 4.2 times less risky than INSURANCE AUST. It trades about -0.13 of its potential returns per unit of risk. INSURANCE AUST GRP is currently generating about -0.12 per unit of risk. If you would invest 925.00 in Sixt Leasing SE on November 28, 2024 and sell it today you would lose (20.00) from holding Sixt Leasing SE or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sixt Leasing SE vs. INSURANCE AUST GRP
Performance |
| Timeline |
| Sixt Leasing SE |
| INSURANCE AUST GRP |
Sixt Leasing and INSURANCE AUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and INSURANCE AUST
The main advantage of trading using opposite Sixt Leasing and INSURANCE AUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, INSURANCE AUST 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 INSURANCE AUST will offset losses from the drop in INSURANCE AUST's long position.| Sixt Leasing vs. Playtech plc | Sixt Leasing vs. ASPEN TECHINC DL | Sixt Leasing vs. CHEMICAL INDUSTRIES | Sixt Leasing vs. Sekisui Chemical Co |
| INSURANCE AUST vs. DaChan Food Limited | INSURANCE AUST vs. Xiwang Special Steel | INSURANCE AUST vs. Tianjin Capital Environmental | INSURANCE AUST vs. China Modern Dairy |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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