Correlation Between Sixt SE and Motorcar Parts
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Motorcar Parts 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 Sixt SE and Motorcar Parts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Motorcar Parts of, you can compare the effects of market volatilities on Sixt SE and Motorcar Parts 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 Sixt SE with a short position of Motorcar Parts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Motorcar Parts.
Diversification Opportunities for Sixt SE and Motorcar Parts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and Motorcar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Motorcar Parts of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Motorcar Parts and Sixt SE 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 Sixt SE are associated (or correlated) with Motorcar Parts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Motorcar Parts has no effect on the direction of Sixt SE i.e., Sixt SE and Motorcar Parts go up and down completely randomly.
Pair Corralation between Sixt SE and Motorcar Parts
Assuming the 90 days trading horizon Sixt SE is expected to generate 0.69 times more return on investment than Motorcar Parts. However, Sixt SE is 1.45 times less risky than Motorcar Parts. It trades about 0.1 of its potential returns per unit of risk. Motorcar Parts of is currently generating about 0.05 per unit of risk. If you would invest 6,430 in Sixt SE on September 3, 2024 and sell it today you would earn a total of 560.00 from holding Sixt SE or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. Motorcar Parts of
Performance |
| Timeline |
| Sixt SE |
| Motorcar Parts |
Sixt SE and Motorcar Parts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Motorcar Parts
The main advantage of trading using opposite Sixt SE and Motorcar Parts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Motorcar Parts 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 Motorcar Parts will offset losses from the drop in Motorcar Parts' long position.| Sixt SE vs. REVO INSURANCE SPA | Sixt SE vs. Mobilezone Holding AG | Sixt SE vs. Chunghwa Telecom Co | Sixt SE vs. Cogent Communications Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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