Correlation Between Sixt SE and Hays Plc
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Hays Plc 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 Hays Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Hays plc, you can compare the effects of market volatilities on Sixt SE and Hays Plc 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 Hays Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Hays Plc.
Diversification Opportunities for Sixt SE and Hays Plc
Pay attention - limited upside
The 3 months correlation between Sixt and Hays is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Hays plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hays plc 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 Hays Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hays plc has no effect on the direction of Sixt SE i.e., Sixt SE and Hays Plc go up and down completely randomly.
Pair Corralation between Sixt SE and Hays Plc
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the Hays Plc. But the stock apears to be less risky and, when comparing its historical volatility, Sixt SE is 1.38 times less risky than Hays Plc. The stock trades about -0.04 of its potential returns per unit of risk. The Hays plc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 119.00 in Hays plc on August 31, 2024 and sell it today you would lose (26.00) from holding Hays plc or give up 21.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. Hays plc
Performance |
| Timeline |
| Sixt SE |
| Hays plc |
Sixt SE and Hays Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Hays Plc
The main advantage of trading using opposite Sixt SE and Hays Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Hays Plc 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 Hays Plc will offset losses from the drop in Hays Plc's long position.| Sixt SE vs. Datadog | Sixt SE vs. Datang International Power | Sixt SE vs. QINGCI GAMES INC | Sixt SE vs. GAMING FAC SA |
| Hays Plc vs. GFL ENVIRONM | Hays Plc vs. Cleanaway Waste Management | Hays Plc vs. Treasury Wine Estates | Hays Plc vs. Reliance Steel Aluminum |
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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