Correlation Between Shyft and CNH Industrial
Can any of the company-specific risk be diversified away by investing in both Shyft and CNH Industrial 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 Shyft and CNH Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shyft Group and CNH Industrial NV, you can compare the effects of market volatilities on Shyft and CNH Industrial 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 Shyft with a short position of CNH Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyft and CNH Industrial.
Diversification Opportunities for Shyft and CNH Industrial
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shyft and CNH is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Shyft Group and CNH Industrial NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNH Industrial NV and Shyft 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 Shyft Group are associated (or correlated) with CNH Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNH Industrial NV has no effect on the direction of Shyft i.e., Shyft and CNH Industrial go up and down completely randomly.
Pair Corralation between Shyft and CNH Industrial
If you would invest 1,372 in Shyft Group on August 28, 2024 and sell it today you would earn a total of 63.00 from holding Shyft Group or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Shyft Group vs. CNH Industrial NV
Performance |
| Timeline |
| Shyft Group |
| CNH Industrial NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shyft and CNH Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shyft and CNH Industrial
The main advantage of trading using opposite Shyft and CNH Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shyft position performs unexpectedly, CNH Industrial 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 CNH Industrial will offset losses from the drop in CNH Industrial's long position.| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Manitex International | Shyft vs. Rev Group |
| CNH Industrial vs. Deere Company | CNH Industrial vs. Lindsay | CNH Industrial vs. Alamo Group | CNH Industrial vs. Caterpillar |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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