Correlation Between Shyft and Terex
Can any of the company-specific risk be diversified away by investing in both Shyft and Terex 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 Terex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shyft Group and Terex, you can compare the effects of market volatilities on Shyft and Terex 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 Terex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shyft and Terex.
Diversification Opportunities for Shyft and Terex
Almost no diversification
The 3 months correlation between Shyft and Terex is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shyft Group and Terex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Terex 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 Terex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Terex has no effect on the direction of Shyft i.e., Shyft and Terex go up and down completely randomly.
Pair Corralation between Shyft and Terex
Given the investment horizon of 90 days Shyft Group is expected to under-perform the Terex. In addition to that, Shyft is 1.55 times more volatile than Terex. It trades about -0.02 of its total potential returns per unit of risk. Terex is currently generating about -0.02 per unit of volatility. If you would invest 5,125 in Terex on November 1, 2024 and sell it today you would lose (228.00) from holding Terex or give up 4.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shyft Group vs. Terex
Performance |
| Timeline |
| Shyft Group |
| Terex |
Shyft and Terex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shyft and Terex
The main advantage of trading using opposite Shyft and Terex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shyft position performs unexpectedly, Terex 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 Terex will offset losses from the drop in Terex's long position.| Shyft vs. Astec Industries | Shyft vs. Hyster Yale Materials Handling | Shyft vs. Rev Group | Shyft vs. Lindsay |
| Terex vs. Oshkosh | Terex vs. Astec Industries | Terex vs. Hyster Yale Materials Handling | Terex vs. Manitowoc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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