Correlation Between Sixt Leasing and National Health
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and National Health 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 National Health 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 National Health Investors, you can compare the effects of market volatilities on Sixt Leasing and National Health 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 National Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and National Health.
Diversification Opportunities for Sixt Leasing and National Health
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sixt and National is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and National Health Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Health Investors 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 National Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Health Investors has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and National Health go up and down completely randomly.
Pair Corralation between Sixt Leasing and National Health
Assuming the 90 days trading horizon Sixt Leasing SE is expected to under-perform the National Health. But the stock apears to be less risky and, when comparing its historical volatility, Sixt Leasing SE is 1.01 times less risky than National Health. The stock trades about -0.02 of its potential returns per unit of risk. The National Health Investors is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,041 in National Health Investors on August 31, 2024 and sell it today you would earn a total of 3,209 from holding National Health Investors or generate 79.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. National Health Investors
Performance |
| Timeline |
| Sixt Leasing SE |
| National Health Investors |
Sixt Leasing and National Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and National Health
The main advantage of trading using opposite Sixt Leasing and National Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, National Health 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 National Health will offset losses from the drop in National Health's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| National Health vs. Apple Inc | National Health vs. Apple Inc | National Health vs. Apple Inc | National Health 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| 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 |