Correlation Between Sixt Leasing and BW OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Sixt Leasing and BW OFFSHORE 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 BW OFFSHORE 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 BW OFFSHORE LTD, you can compare the effects of market volatilities on Sixt Leasing and BW OFFSHORE 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 BW OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt Leasing and BW OFFSHORE.
Diversification Opportunities for Sixt Leasing and BW OFFSHORE
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sixt and XY81 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Sixt Leasing SE and BW OFFSHORE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BW OFFSHORE LTD 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 BW OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BW OFFSHORE LTD has no effect on the direction of Sixt Leasing i.e., Sixt Leasing and BW OFFSHORE go up and down completely randomly.
Pair Corralation between Sixt Leasing and BW OFFSHORE
Assuming the 90 days trading horizon Sixt Leasing SE is expected to generate 0.69 times more return on investment than BW OFFSHORE. However, Sixt Leasing SE is 1.44 times less risky than BW OFFSHORE. It trades about -0.04 of its potential returns per unit of risk. BW OFFSHORE LTD is currently generating about -0.08 per unit of risk. If you would invest 950.00 in Sixt Leasing SE on September 13, 2024 and sell it today you would lose (25.00) from holding Sixt Leasing SE or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt Leasing SE vs. BW OFFSHORE LTD
Performance |
| Timeline |
| Sixt Leasing SE |
| BW OFFSHORE LTD |
Sixt Leasing and BW OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt Leasing and BW OFFSHORE
The main advantage of trading using opposite Sixt Leasing and BW OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt Leasing position performs unexpectedly, BW OFFSHORE 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 BW OFFSHORE will offset losses from the drop in BW OFFSHORE's long position.| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
| BW OFFSHORE vs. Tenaris SA | BW OFFSHORE vs. NOV Inc | BW OFFSHORE vs. Superior Plus Corp | BW OFFSHORE vs. SIVERS SEMICONDUCTORS AB |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| 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 | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance |