Correlation Between Sixt SE and ALD SA
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By analyzing existing cross correlation between Sixt SE and ALD SA, you can compare the effects of market volatilities on Sixt SE and ALD SA 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 ALD SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and ALD SA.
Diversification Opportunities for Sixt SE and ALD SA
Poor diversification
The 3 months correlation between Sixt and ALD is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and ALD SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALD SA 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 ALD SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALD SA has no effect on the direction of Sixt SE i.e., Sixt SE and ALD SA go up and down completely randomly.
Pair Corralation between Sixt SE and ALD SA
Assuming the 90 days trading horizon Sixt SE is expected to generate 2.35 times less return on investment than ALD SA. But when comparing it to its historical volatility, Sixt SE is 2.42 times less risky than ALD SA. It trades about 0.2 of its potential returns per unit of risk. ALD SA is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 641.00 in ALD SA on November 1, 2024 and sell it today you would earn a total of 59.00 from holding ALD SA or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixt SE vs. ALD SA
Performance |
| Timeline |
| Sixt SE |
| ALD SA |
Sixt SE and ALD SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and ALD SA
The main advantage of trading using opposite Sixt SE and ALD SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, ALD SA 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 ALD SA will offset losses from the drop in ALD SA's long position.| Sixt SE vs. United Rentals | Sixt SE vs. WillScot Mobile Mini | Sixt SE vs. Avis Budget Group | Sixt SE vs. ALD SA |
| ALD SA vs. United Rentals | ALD SA vs. WillScot Mobile Mini | ALD SA vs. Avis Budget Group | ALD SA vs. Sixt SE |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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