Correlation Between Oshkosh and Shyft
Can any of the company-specific risk be diversified away by investing in both Oshkosh and Shyft 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 Shyft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshkosh and Shyft Group, you can compare the effects of market volatilities on Oshkosh and Shyft 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 Shyft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshkosh and Shyft.
Diversification Opportunities for Oshkosh and Shyft
Poor diversification
The 3 months correlation between Oshkosh and Shyft is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Oshkosh and Shyft Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shyft Group 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 Shyft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shyft Group has no effect on the direction of Oshkosh i.e., Oshkosh and Shyft go up and down completely randomly.
Pair Corralation between Oshkosh and Shyft
Considering the 90-day investment horizon Oshkosh is expected to generate 0.5 times more return on investment than Shyft. However, Oshkosh is 2.02 times less risky than Shyft. It trades about 0.07 of its potential returns per unit of risk. Shyft Group is currently generating about -0.02 per unit of risk. If you would invest 7,366 in Oshkosh on August 27, 2024 and sell it today you would earn a total of 3,815 from holding Oshkosh or generate 51.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshkosh vs. Shyft Group
Performance |
| Timeline |
| Oshkosh |
| Shyft Group |
Oshkosh and Shyft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshkosh and Shyft
The main advantage of trading using opposite Oshkosh and Shyft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshkosh position performs unexpectedly, Shyft 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 Shyft will offset losses from the drop in Shyft's long position.| Oshkosh vs. Terex | Oshkosh vs. Astec Industries | Oshkosh vs. Hyster Yale Materials Handling | Oshkosh vs. Manitex International |
| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Manitex International | Shyft 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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