Correlation Between Sixt Leasing and PG E
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and PG E 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 PG E 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 PG E P6, you can compare the effects of market volatilities on Sixt Leasing and PG E 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 PG E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and PG E.
Diversification Opportunities for Sixt Leasing and PG E
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and PCG6 is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and PG E P6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PG E P6 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 PG E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PG E P6 has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and PG E go up and down completely randomly.
Pair Corralation between Sixt Leasing and PG E
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the PG E. In addition to that, Sixt Leasing is 1.07 times more volatile than PG E P6. It trades about -0.01 of its total potential returns per unit of risk. PG E P6 is currently generating about 0.05 per unit of volatility. If you would invest 1,612 in PG E P6 on September 13, 2024 and sell it today you would earn a total of 568.00 from holding PG E P6 or generate 35.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. PG E P6
Performance |
| Timeline |
| Sixt Leasing SE |
| PG E P6 |
Sixt Leasing and PG E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and PG E
The main advantage of trading using opposite Sixt Leasing and PG E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, PG E 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 PG E will offset losses from the drop in PG E's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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