Correlation Between Sixt Leasing and Peel Mining
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and Peel Mining 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 Peel Mining 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 Peel Mining Limited, you can compare the effects of market volatilities on Sixt Leasing and Peel Mining 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 Peel Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and Peel Mining.
Diversification Opportunities for Sixt Leasing and Peel Mining
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Peel is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and Peel Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peel Mining Limited 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 Peel Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peel Mining Limited has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and Peel Mining go up and down completely randomly.
Pair Corralation between Sixt Leasing and Peel Mining
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the Peel Mining. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 5.51 times less risky than Peel Mining. The stock trades about -0.06 of its potential returns per unit of risk. The Peel Mining Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 6.45 in Peel Mining Limited on September 15, 2024 and sell it today you would earn a total of 0.50 from holding Peel Mining Limited or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Sixt Leasing SE vs. Peel Mining Limited
Performance |
| Timeline |
| Sixt Leasing SE |
| Peel Mining Limited |
Sixt Leasing and Peel Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and Peel Mining
The main advantage of trading using opposite Sixt Leasing and Peel Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, Peel Mining 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 Peel Mining will offset losses from the drop in Peel Mining's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| Peel Mining vs. CENTURIA OFFICE REIT | Peel Mining vs. Haverty Furniture Companies | Peel Mining vs. Tri Pointe Homes | Peel Mining vs. Cars 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |