Correlation Between Sixt SE and Avis Budget
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By analyzing existing cross correlation between Sixt SE and Avis Budget Group, you can compare the effects of market volatilities on Sixt SE and Avis Budget 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 Avis Budget. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Avis Budget.
Diversification Opportunities for Sixt SE and Avis Budget
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sixt and Avis is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Avis Budget Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avis Budget Group 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 Avis Budget. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avis Budget Group has no effect on the direction of Sixt SE i.e., Sixt SE and Avis Budget go up and down completely randomly.
Pair Corralation between Sixt SE and Avis Budget
Assuming the 90 days trading horizon Sixt SE is expected to generate 0.34 times more return on investment than Avis Budget. However, Sixt SE is 2.92 times less risky than Avis Budget. It trades about 0.3 of its potential returns per unit of risk. Avis Budget Group is currently generating about -0.28 per unit of risk. If you would invest 5,530 in Sixt SE on October 12, 2024 and sell it today you would earn a total of 260.00 from holding Sixt SE or generate 4.7% 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. Avis Budget Group
Performance |
| Timeline |
| Sixt SE |
| Avis Budget Group |
Sixt SE and Avis Budget Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Avis Budget
The main advantage of trading using opposite Sixt SE and Avis Budget positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Avis Budget 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 Avis Budget will offset losses from the drop in Avis Budget's long position.| Sixt SE vs. FAST RETAIL ADR | Sixt SE vs. JIAHUA STORES | Sixt SE vs. Zijin Mining Group | Sixt SE vs. COSTCO WHOLESALE CDR |
| Avis Budget vs. ADRIATIC METALS LS 013355 | Avis Budget vs. Nippon Light Metal | Avis Budget vs. PARKEN Sport Entertainment | Avis Budget vs. Gruppo Mutuionline SpA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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