Correlation Between Sixt SE and Takara Holdings
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Takara Holdings 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 Takara Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Takara Holdings, you can compare the effects of market volatilities on Sixt SE and Takara Holdings 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 Takara Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Takara Holdings.
Diversification Opportunities for Sixt SE and Takara Holdings
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Takara is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Takara Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takara Holdings 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 Takara Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takara Holdings has no effect on the direction of Sixt SE i.e., Sixt SE and Takara Holdings go up and down completely randomly.
Pair Corralation between Sixt SE and Takara Holdings
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the Takara Holdings. In addition to that, Sixt SE is 2.23 times more volatile than Takara Holdings. It trades about -0.1 of its total potential returns per unit of risk. Takara Holdings is currently generating about 0.33 per unit of volatility. If you would invest 680.00 in Takara Holdings on August 31, 2024 and sell it today you would earn a total of 60.00 from holding Takara Holdings or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sixt SE vs. Takara Holdings
Performance |
| Timeline |
| Sixt SE |
| Takara Holdings |
Sixt SE and Takara Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Takara Holdings
The main advantage of trading using opposite Sixt SE and Takara Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Takara Holdings 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 Takara Holdings will offset losses from the drop in Takara Holdings' long position.| Sixt SE vs. Datadog | Sixt SE vs. Datang International Power | Sixt SE vs. QINGCI GAMES INC | Sixt SE vs. GAMING FAC SA |
| Takara Holdings vs. Summit Hotel Properties | Takara Holdings vs. AUSNUTRIA DAIRY | Takara Holdings vs. CAL MAINE FOODS | Takara Holdings vs. MHP Hotel AG |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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