Correlation Between HEMISPHERE EGY and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both HEMISPHERE EGY 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 HEMISPHERE EGY and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEMISPHERE EGY and Sixt Leasing SE, you can compare the effects of market volatilities on HEMISPHERE EGY 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 HEMISPHERE EGY with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEMISPHERE EGY and Sixt Leasing.
Diversification Opportunities for HEMISPHERE EGY and Sixt Leasing
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HEMISPHERE and Sixt is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding HEMISPHERE EGY 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 HEMISPHERE EGY 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 HEMISPHERE EGY 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 HEMISPHERE EGY i.e., HEMISPHERE EGY and Sixt Leasing go up and down completely randomly.
Pair Corralation between HEMISPHERE EGY and Sixt Leasing
Assuming the 90 days trading horizon HEMISPHERE EGY is expected to generate 0.86 times more return on investment than Sixt Leasing. However, HEMISPHERE EGY is 1.17 times less risky than Sixt Leasing. It trades about 0.1 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 67.00 in HEMISPHERE EGY on October 14, 2024 and sell it today you would earn a total of 57.00 from holding HEMISPHERE EGY or generate 85.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEMISPHERE EGY vs. Sixt Leasing SE
Performance |
| Timeline |
| HEMISPHERE EGY |
| Sixt Leasing SE |
HEMISPHERE EGY and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEMISPHERE EGY and Sixt Leasing
The main advantage of trading using opposite HEMISPHERE EGY and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEMISPHERE EGY 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.| HEMISPHERE EGY vs. Soken Chemical Engineering | HEMISPHERE EGY vs. Tencent Music Entertainment | HEMISPHERE EGY vs. China BlueChemical | HEMISPHERE EGY vs. Mitsubishi Gas Chemical |
| Sixt Leasing vs. Tower Semiconductor | Sixt Leasing vs. BE Semiconductor Industries | Sixt Leasing vs. Ryanair Holdings plc | Sixt Leasing vs. SEALED AIR |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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