Correlation Between Sixt SE and Trade Desk
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By analyzing existing cross correlation between Sixt SE and The Trade Desk, you can compare the effects of market volatilities on Sixt SE and Trade Desk 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 Trade Desk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Trade Desk.
Diversification Opportunities for Sixt SE and Trade Desk
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sixt and Trade is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and The Trade Desk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trade Desk 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 Trade Desk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trade Desk has no effect on the direction of Sixt SE i.e., Sixt SE and Trade Desk go up and down completely randomly.
Pair Corralation between Sixt SE and Trade Desk
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the Trade Desk. But the stock apears to be less risky and, when comparing its historical volatility, Sixt SE is 1.67 times less risky than Trade Desk. The stock trades about -0.01 of its potential returns per unit of risk. The The Trade Desk is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,690 in The Trade Desk on September 3, 2024 and sell it today you would earn a total of 3,410 from holding The Trade Desk or generate 39.24% 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. The Trade Desk
Performance |
| Timeline |
| Sixt SE |
| Trade Desk |
Sixt SE and Trade Desk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and Trade Desk
The main advantage of trading using opposite Sixt SE and Trade Desk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Trade Desk 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 Trade Desk will offset losses from the drop in Trade Desk's long position.| Sixt SE vs. The Trade Desk | Sixt SE vs. FLOW TRADERS LTD | Sixt SE vs. Hyatt Hotels | Sixt SE vs. SALESFORCE INC CDR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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