Correlation Between Sixt SE and Transport International
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By analyzing existing cross correlation between Sixt SE and Transport International Holdings, you can compare the effects of market volatilities on Sixt SE and Transport International 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 Transport International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Transport International.
Diversification Opportunities for Sixt SE and Transport International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sixt and Transport is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Transport International Holdin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport International 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 Transport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport International has no effect on the direction of Sixt SE i.e., Sixt SE and Transport International go up and down completely randomly.
Pair Corralation between Sixt SE and Transport International
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the Transport International. But the stock apears to be less risky and, when comparing its historical volatility, Sixt SE is 1.0 times less risky than Transport International. The stock trades about -0.09 of its potential returns per unit of risk. The Transport International Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Transport International Holdings on September 4, 2024 and sell it today you would earn a total of 1.00 from holding Transport International Holdings or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sixt SE vs. Transport International Holdin
Performance |
| Timeline |
| Sixt SE |
| Transport International |
Sixt SE and Transport International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Transport International
The main advantage of trading using opposite Sixt SE and Transport International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Transport International 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 Transport International will offset losses from the drop in Transport International's long position.| Sixt SE vs. Transport International Holdings | Sixt SE vs. GOLD ROAD RES | Sixt SE vs. EIDESVIK OFFSHORE NK | Sixt SE vs. Liberty Broadband |
| Transport International vs. Superior Plus Corp | Transport International vs. NMI Holdings | Transport International vs. Origin Agritech | Transport International vs. SIVERS SEMICONDUCTORS AB |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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