Correlation Between Sixt SE and Herman Miller
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Herman Miller 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 Herman Miller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Herman Miller, you can compare the effects of market volatilities on Sixt SE and Herman Miller 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 Herman Miller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Herman Miller.
Diversification Opportunities for Sixt SE and Herman Miller
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Herman is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Herman Miller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herman Miller 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 Herman Miller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herman Miller has no effect on the direction of Sixt SE i.e., Sixt SE and Herman Miller go up and down completely randomly.
Pair Corralation between Sixt SE and Herman Miller
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the Herman Miller. In addition to that, Sixt SE is 1.28 times more volatile than Herman Miller. It trades about -0.06 of its total potential returns per unit of risk. Herman Miller is currently generating about 0.3 per unit of volatility. If you would invest 2,083 in Herman Miller on September 1, 2024 and sell it today you would earn a total of 297.00 from holding Herman Miller or generate 14.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. Herman Miller
Performance |
| Timeline |
| Sixt SE |
| Herman Miller |
Sixt SE and Herman Miller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Herman Miller
The main advantage of trading using opposite Sixt SE and Herman Miller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Herman Miller 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 Herman Miller will offset losses from the drop in Herman Miller's long position.| Sixt SE vs. United Rentals | Sixt SE vs. Superior Plus Corp | Sixt SE vs. NMI Holdings | Sixt SE vs. Origin Agritech |
| Herman Miller vs. Canon Inc | Herman Miller vs. Ricoh Company | Herman Miller vs. HNI Corporation | Herman Miller vs. PAX Global Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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