Correlation Between Manitowoc and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Manitowoc and Hyster Yale 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 Manitowoc and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitowoc and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Manitowoc and Hyster Yale 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 Manitowoc with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitowoc and Hyster Yale.
Diversification Opportunities for Manitowoc and Hyster Yale
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitowoc and Hyster is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Manitowoc and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials and Manitowoc 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 Manitowoc are associated (or correlated) with Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Manitowoc i.e., Manitowoc and Hyster Yale go up and down completely randomly.
Pair Corralation between Manitowoc and Hyster Yale
Considering the 90-day investment horizon Manitowoc is expected to generate 1.41 times more return on investment than Hyster Yale. However, Manitowoc is 1.41 times more volatile than Hyster Yale Materials Handling. It trades about 0.1 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.17 per unit of risk. If you would invest 965.00 in Manitowoc on August 24, 2024 and sell it today you would earn a total of 92.00 from holding Manitowoc or generate 9.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitowoc vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Manitowoc |
| Hyster Yale Materials |
Manitowoc and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitowoc and Hyster Yale
The main advantage of trading using opposite Manitowoc and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitowoc position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Manitowoc vs. Oshkosh | Manitowoc vs. Alamo Group | Manitowoc vs. Wabash National | Manitowoc vs. Hyster Yale Materials Handling |
| Hyster Yale vs. Astec Industries | Hyster Yale vs. Manitex International | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |