Correlation Between Sixt SE and Cross Country
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Cross Country 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 Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Cross Country Healthcare, you can compare the effects of market volatilities on Sixt SE and Cross Country 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 Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Cross Country.
Diversification Opportunities for Sixt SE and Cross Country
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sixt and Cross is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare 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 Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Sixt SE i.e., Sixt SE and Cross Country go up and down completely randomly.
Pair Corralation between Sixt SE and Cross Country
Assuming the 90 days trading horizon Sixt SE is expected to generate 0.67 times more return on investment than Cross Country. However, Sixt SE is 1.5 times less risky than Cross Country. It trades about -0.01 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.05 per unit of risk. If you would invest 8,546 in Sixt SE on September 2, 2024 and sell it today you would lose (1,556) from holding Sixt SE or give up 18.21% 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. Cross Country Healthcare
Performance |
| Timeline |
| Sixt SE |
| Cross Country Healthcare |
Sixt SE and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Cross Country
The main advantage of trading using opposite Sixt SE and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| Sixt SE vs. Superior Plus Corp | Sixt SE vs. NMI Holdings | Sixt SE vs. Origin Agritech | Sixt SE vs. SIVERS SEMICONDUCTORS AB |
| Cross Country vs. SMA Solar Technology | Cross Country vs. Align Technology | Cross Country vs. Micron Technology | Cross Country vs. Transportadora de Gas |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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