Correlation Between Titan International and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Titan International and Hyster Yale 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 Titan International and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Titan International and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Titan International and Hyster Yale 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 Titan International with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Titan International and Hyster Yale.
Diversification Opportunities for Titan International and Hyster Yale
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Titan and Hyster is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Titan International 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 Titan International 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 Titan International are associated (or correlated) with Hyster Yale. 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 Titan International i.e., Titan International and Hyster Yale go up and down completely randomly.
Pair Corralation between Titan International and Hyster Yale
Considering the 90-day investment horizon Titan International is expected to under-perform the Hyster Yale. In addition to that, Titan International is 1.18 times more volatile than Hyster Yale Materials Handling. It trades about -0.03 of its total potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.01 per unit of volatility. If you would invest 5,993 in Hyster Yale Materials Handling on August 28, 2024 and sell it today you would lose (256.00) from holding Hyster Yale Materials Handling or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Titan International vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Titan International |
| Hyster Yale Materials |
Titan International and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Titan International and Hyster Yale
The main advantage of trading using opposite Titan International and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Titan International position performs unexpectedly, Hyster Yale 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 will offset losses from the drop in Hyster Yale's long position.| Titan International vs. Shyft Group | Titan International vs. Manitowoc | Titan International vs. Oshkosh | Titan International vs. Terex |
| Hyster Yale vs. Nikola Corp | Hyster Yale vs. Wabash National | Hyster Yale vs. American Premium Water | Hyster Yale vs. Titan International |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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