Correlation Between Sixt SE and SEDANA MEDICAL
Can any of the company-specific risk be diversified away by investing in both Sixt SE and SEDANA MEDICAL 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 SEDANA MEDICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and SEDANA MEDICAL AB, you can compare the effects of market volatilities on Sixt SE and SEDANA MEDICAL 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 SEDANA MEDICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and SEDANA MEDICAL.
Diversification Opportunities for Sixt SE and SEDANA MEDICAL
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sixt and SEDANA is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and SEDANA MEDICAL AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEDANA MEDICAL AB 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 SEDANA MEDICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEDANA MEDICAL AB has no effect on the direction of Sixt SE i.e., Sixt SE and SEDANA MEDICAL go up and down completely randomly.
Pair Corralation between Sixt SE and SEDANA MEDICAL
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the SEDANA MEDICAL. But the stock apears to be less risky and, when comparing its historical volatility, Sixt SE is 2.03 times less risky than SEDANA MEDICAL. The stock trades about -0.06 of its potential returns per unit of risk. The SEDANA MEDICAL AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 146.00 in SEDANA MEDICAL AB on November 28, 2024 and sell it today you would earn a total of 6.00 from holding SEDANA MEDICAL AB or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. SEDANA MEDICAL AB
Performance |
| Timeline |
| Sixt SE |
| SEDANA MEDICAL AB |
Sixt SE and SEDANA MEDICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and SEDANA MEDICAL
The main advantage of trading using opposite Sixt SE and SEDANA MEDICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, SEDANA MEDICAL 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 SEDANA MEDICAL will offset losses from the drop in SEDANA MEDICAL's long position.| Sixt SE vs. Platinum Investment Management | Sixt SE vs. AGNC Investment Corp | Sixt SE vs. SYSTEMAIR AB | Sixt SE vs. QLEANAIR AB SK 50 |
| SEDANA MEDICAL vs. Abbott Laboratories | SEDANA MEDICAL vs. Medtronic PLC | SEDANA MEDICAL vs. Stryker | SEDANA MEDICAL vs. Boston Scientific |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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