Correlation Between Sixt Leasing and T MOBILE
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and T MOBILE 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 T MOBILE 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 T MOBILE INCDL 00001, you can compare the effects of market volatilities on Sixt Leasing and T MOBILE 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 T MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and T MOBILE.
Diversification Opportunities for Sixt Leasing and T MOBILE
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and TM5 is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and T MOBILE INCDL 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T MOBILE INCDL 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 T MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T MOBILE INCDL has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and T MOBILE go up and down completely randomly.
Pair Corralation between Sixt Leasing and T MOBILE
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the T MOBILE. In addition to that, Sixt Leasing is 1.92 times more volatile than T MOBILE INCDL 00001. It trades about -0.07 of its total potential returns per unit of risk. T MOBILE INCDL 00001 is currently generating about -0.08 per unit of volatility. If you would invest 22,664 in T MOBILE INCDL 00001 on September 15, 2024 and sell it today you would lose (549.00) from holding T MOBILE INCDL 00001 or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. T MOBILE INCDL 00001
Performance |
| Timeline |
| Sixt Leasing SE |
| T MOBILE INCDL |
Sixt Leasing and T MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and T MOBILE
The main advantage of trading using opposite Sixt Leasing and T MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, T MOBILE 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 T MOBILE will offset losses from the drop in T MOBILE's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| T MOBILE vs. UNITED RENTALS | T MOBILE vs. Sixt Leasing SE | T MOBILE vs. WILLIS LEASE FIN | T MOBILE vs. Elmos Semiconductor SE |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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