Correlation Between TRADEDOUBLER and Hyster-Yale Materials
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and Hyster-Yale Materials 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 TRADEDOUBLER and Hyster-Yale Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and Hyster Yale Materials Handling, you can compare the effects of market volatilities on TRADEDOUBLER and Hyster-Yale Materials 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 TRADEDOUBLER with a short position of Hyster-Yale Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and Hyster-Yale Materials.
Diversification Opportunities for TRADEDOUBLER and Hyster-Yale Materials
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between TRADEDOUBLER and Hyster-Yale is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with Hyster-Yale Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and Hyster-Yale Materials go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and Hyster-Yale Materials
Assuming the 90 days horizon TRADEDOUBLER is expected to generate 4.94 times less return on investment than Hyster-Yale Materials. In addition to that, TRADEDOUBLER is 1.13 times more volatile than Hyster Yale Materials Handling. It trades about 0.01 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.06 per unit of volatility. If you would invest 2,512 in Hyster Yale Materials Handling on September 3, 2024 and sell it today you would earn a total of 2,738 from holding Hyster Yale Materials Handling or generate 109.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| Hyster Yale Materials |
TRADEDOUBLER and Hyster-Yale Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and Hyster-Yale Materials
The main advantage of trading using opposite TRADEDOUBLER and Hyster-Yale Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, Hyster-Yale Materials 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 Hyster-Yale Materials will offset losses from the drop in Hyster-Yale Materials' long position.| TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. NMI Holdings | TRADEDOUBLER vs. Origin Agritech | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB |
| Hyster-Yale Materials vs. Superior Plus Corp | Hyster-Yale Materials vs. NMI Holdings | Hyster-Yale Materials vs. Origin Agritech | Hyster-Yale Materials vs. SIVERS SEMICONDUCTORS AB |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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