Correlation Between Sypris Solutions and Dana
Can any of the company-specific risk be diversified away by investing in both Sypris Solutions and Dana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sypris Solutions and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sypris Solutions and Dana Inc, you can compare the effects of market volatilities on Sypris Solutions and Dana 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 Sypris Solutions with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sypris Solutions and Dana.
Diversification Opportunities for Sypris Solutions and Dana
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sypris and Dana is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sypris Solutions and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and Sypris Solutions 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 Sypris Solutions are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Sypris Solutions i.e., Sypris Solutions and Dana go up and down completely randomly.
Pair Corralation between Sypris Solutions and Dana
Given the investment horizon of 90 days Sypris Solutions is expected to generate 1.06 times less return on investment than Dana. In addition to that, Sypris Solutions is 2.86 times more volatile than Dana Inc. It trades about 0.12 of its total potential returns per unit of risk. Dana Inc is currently generating about 0.36 per unit of volatility. If you would invest 782.00 in Dana Inc on November 1, 2024 and sell it today you would earn a total of 876.00 from holding Dana Inc or generate 112.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sypris Solutions vs. Dana Inc
Performance |
| Timeline |
| Sypris Solutions |
| Dana Inc |
Sypris Solutions and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sypris Solutions and Dana
The main advantage of trading using opposite Sypris Solutions and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sypris Solutions position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Sypris Solutions vs. Monro Muffler Brake | Sypris Solutions vs. Magna International | Sypris Solutions vs. BorgWarner | Sypris Solutions vs. Mobileye Global Class |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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