Correlation Between Sixt SE and WILLIS LEASE
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By analyzing existing cross correlation between Sixt SE and WILLIS LEASE FIN, you can compare the effects of market volatilities on Sixt SE and WILLIS LEASE 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 WILLIS LEASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and WILLIS LEASE.
Diversification Opportunities for Sixt SE and WILLIS LEASE
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sixt and WILLIS is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and WILLIS LEASE FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WILLIS LEASE FIN 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 WILLIS LEASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WILLIS LEASE FIN has no effect on the direction of Sixt SE i.e., Sixt SE and WILLIS LEASE go up and down completely randomly.
Pair Corralation between Sixt SE and WILLIS LEASE
Assuming the 90 days trading horizon Sixt SE is expected to under-perform the WILLIS LEASE. But the stock apears to be less risky and, when comparing its historical volatility, Sixt SE is 1.73 times less risky than WILLIS LEASE. The stock trades about -0.02 of its potential returns per unit of risk. The WILLIS LEASE FIN is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,801 in WILLIS LEASE FIN on August 31, 2024 and sell it today you would earn a total of 16,799 from holding WILLIS LEASE FIN or generate 441.96% 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. WILLIS LEASE FIN
Performance |
| Timeline |
| Sixt SE |
| WILLIS LEASE FIN |
Sixt SE and WILLIS LEASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixt SE and WILLIS LEASE
The main advantage of trading using opposite Sixt SE and WILLIS LEASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, WILLIS LEASE 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 WILLIS LEASE will offset losses from the drop in WILLIS LEASE's long position.| Sixt SE vs. United Rentals | Sixt SE vs. Superior Plus Corp | Sixt SE vs. NMI Holdings | Sixt SE vs. Origin Agritech |
| WILLIS LEASE vs. National Storage Affiliates | WILLIS LEASE vs. DATANG INTL POW | WILLIS LEASE vs. BE Semiconductor Industries | WILLIS LEASE vs. Hyrican Informationssysteme Aktiengesellschaft |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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