Correlation Between Maple Leaf and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Maple Leaf and Sixt Leasing 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 Maple Leaf and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maple Leaf Foods and Sixt Leasing SE, you can compare the effects of market volatilities on Maple Leaf and Sixt Leasing 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 Maple Leaf with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maple Leaf and Sixt Leasing.
Diversification Opportunities for Maple Leaf and Sixt Leasing
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maple and Sixt is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Maple Leaf Foods and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE and Maple Leaf 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 Maple Leaf Foods are associated (or correlated) with Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of Maple Leaf i.e., Maple Leaf and Sixt Leasing go up and down completely randomly.
Pair Corralation between Maple Leaf and Sixt Leasing
Assuming the 90 days horizon Maple Leaf Foods is expected to generate 1.1 times more return on investment than Sixt Leasing. However, Maple Leaf is 1.1 times more volatile than Sixt Leasing SE. It trades about -0.01 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.02 per unit of risk. If you would invest 1,628 in Maple Leaf Foods on October 9, 2024 and sell it today you would lose (248.00) from holding Maple Leaf Foods or give up 15.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Maple Leaf Foods vs. Sixt Leasing SE
Performance |
| Timeline |
| Maple Leaf Foods |
| Sixt Leasing SE |
Maple Leaf and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maple Leaf and Sixt Leasing
The main advantage of trading using opposite Maple Leaf and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maple Leaf position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| Maple Leaf vs. RCS MediaGroup SpA | Maple Leaf vs. Alliance Data Systems | Maple Leaf vs. Fuji Media Holdings | Maple Leaf vs. Teradata Corp |
| Sixt Leasing vs. MeVis Medical Solutions | Sixt Leasing vs. Data Modul AG | Sixt Leasing vs. Merit Medical Systems | Sixt Leasing vs. Microbot Medical |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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