Correlation Between Oshkosh and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Oshkosh 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 Oshkosh and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshkosh and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Oshkosh 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 Oshkosh with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshkosh and Hyster Yale.
Diversification Opportunities for Oshkosh and Hyster Yale
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oshkosh and Hyster is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Oshkosh 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 Oshkosh 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 Oshkosh 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 Oshkosh i.e., Oshkosh and Hyster Yale go up and down completely randomly.
Pair Corralation between Oshkosh and Hyster Yale
Considering the 90-day investment horizon Oshkosh is expected to generate 3.05 times more return on investment than Hyster Yale. However, Oshkosh is 3.05 times more volatile than Hyster Yale Materials Handling. It trades about 0.22 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.23 per unit of risk. If you would invest 9,507 in Oshkosh on November 1, 2024 and sell it today you would earn a total of 1,819 from holding Oshkosh or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshkosh vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Oshkosh |
| Hyster Yale Materials |
Oshkosh and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshkosh and Hyster Yale
The main advantage of trading using opposite Oshkosh and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshkosh 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.| Oshkosh vs. Terex | Oshkosh vs. Astec Industries | Oshkosh vs. Hyster Yale Materials Handling | Oshkosh vs. Manitowoc |
| Hyster Yale vs. Astec Industries | Hyster Yale vs. Shyft Group | Hyster Yale vs. Rev Group | Hyster Yale vs. Alamo 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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