Correlation Between Sixt SE and ManpowerGroup
Can any of the company-specific risk be diversified away by investing in both Sixt SE and ManpowerGroup 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 ManpowerGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and ManpowerGroup, you can compare the effects of market volatilities on Sixt SE and ManpowerGroup 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 ManpowerGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and ManpowerGroup.
Diversification Opportunities for Sixt SE and ManpowerGroup
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sixt and ManpowerGroup is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and ManpowerGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ManpowerGroup 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 ManpowerGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ManpowerGroup has no effect on the direction of Sixt SE i.e., Sixt SE and ManpowerGroup go up and down completely randomly.
Pair Corralation between Sixt SE and ManpowerGroup
Assuming the 90 days trading horizon Sixt SE is expected to generate 0.99 times more return on investment than ManpowerGroup. However, Sixt SE is 1.01 times less risky than ManpowerGroup. It trades about -0.02 of its potential returns per unit of risk. ManpowerGroup is currently generating about -0.07 per unit of risk. If you would invest 8,669 in Sixt SE on January 18, 2025 and sell it today you would lose (1,094) from holding Sixt SE or give up 12.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Sixt SE vs. ManpowerGroup
Performance |
| Timeline |
| Sixt SE |
| ManpowerGroup |
Sixt SE and ManpowerGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and ManpowerGroup
The main advantage of trading using opposite Sixt SE and ManpowerGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, ManpowerGroup 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 ManpowerGroup will offset losses from the drop in ManpowerGroup's long position.| Sixt SE vs. Southwest Airlines Co | Sixt SE vs. American Airlines Group | Sixt SE vs. AEGEAN AIRLINES | Sixt SE vs. Verizon Communications |
| ManpowerGroup vs. TELECOM ITALRISP ADR10 | ManpowerGroup vs. Liberty Broadband | ManpowerGroup vs. Hemisphere Energy Corp | ManpowerGroup vs. Benchmark Electronics |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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