Correlation Between Sixt SE and Aeroports
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Aeroports 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 Aeroports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Aeroports de Paris, you can compare the effects of market volatilities on Sixt SE and Aeroports 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 Aeroports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Aeroports.
Diversification Opportunities for Sixt SE and Aeroports
Pay attention - limited upside
The 3 months correlation between Sixt and Aeroports is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Aeroports de Paris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeroports de Paris 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 Aeroports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeroports de Paris has no effect on the direction of Sixt SE i.e., Sixt SE and Aeroports go up and down completely randomly.
Pair Corralation between Sixt SE and Aeroports
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the Aeroports. In addition to that, Sixt SE is 2.44 times more volatile than Aeroports de Paris. It trades about -0.06 of its total potential returns per unit of risk. Aeroports de Paris is currently generating about 0.05 per unit of volatility. If you would invest 10,800 in Aeroports de Paris on September 1, 2024 and sell it today you would earn a total of 110.00 from holding Aeroports de Paris or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. Aeroports de Paris
Performance |
| Timeline |
| Sixt SE |
| Aeroports de Paris |
Sixt SE and Aeroports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Aeroports
The main advantage of trading using opposite Sixt SE and Aeroports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Aeroports 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 Aeroports will offset losses from the drop in Aeroports' long position.| Sixt SE vs. United Rentals | Sixt SE vs. Superior Plus Corp | Sixt SE vs. NMI Holdings | Sixt SE vs. Origin Agritech |
| Aeroports vs. ANTA SPORTS PRODUCT | Aeroports vs. Cleanaway Waste Management | Aeroports vs. GRUPO CARSO A1 | Aeroports vs. ePlay Digital |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |