Correlation Between Sixt SE and Superior Plus
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Superior Plus 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 Superior Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Superior Plus Corp, you can compare the effects of market volatilities on Sixt SE and Superior Plus 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 Superior Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Superior Plus.
Diversification Opportunities for Sixt SE and Superior Plus
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Superior is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Superior Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Superior Plus Corp 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 Superior Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Superior Plus Corp has no effect on the direction of Sixt SE i.e., Sixt SE and Superior Plus go up and down completely randomly.
Pair Corralation between Sixt SE and Superior Plus
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the Superior Plus. But the stock apears to be less risky and, when comparing its historical volatility, Sixt SE is 1.08 times less risky than Superior Plus. The stock trades about -0.04 of its potential returns per unit of risk. The Superior Plus Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 576.00 in Superior Plus Corp on August 31, 2024 and sell it today you would lose (150.00) from holding Superior Plus Corp or give up 26.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Sixt SE vs. Superior Plus Corp
Performance |
| Timeline |
| Sixt SE |
| Superior Plus Corp |
Sixt SE and Superior Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Superior Plus
The main advantage of trading using opposite Sixt SE and Superior Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Superior Plus 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 Superior Plus will offset losses from the drop in Superior Plus' long position.| Sixt SE vs. Datadog | Sixt SE vs. Datang International Power | Sixt SE vs. QINGCI GAMES INC | Sixt SE vs. GAMING FAC SA |
| Superior Plus vs. BROADSTNET LEADL 00025 | Superior Plus vs. Mitsubishi Materials | Superior Plus vs. Martin Marietta Materials | Superior Plus vs. Summit Materials |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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