Correlation Between AUSNUTRIA DAIRY and Sixt Leasing

Can any of the company-specific risk be diversified away by investing in both AUSNUTRIA DAIRY and Sixt Leasing 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 AUSNUTRIA DAIRY and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AUSNUTRIA DAIRY and Sixt Leasing SE, you can compare the effects of market volatilities on AUSNUTRIA DAIRY and Sixt Leasing 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 AUSNUTRIA DAIRY with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUSNUTRIA DAIRY and Sixt Leasing.

Diversification Opportunities for AUSNUTRIA DAIRY and Sixt Leasing

0.23

Correlation Coefficient

AUSNUTRIA DAIRY  Sixt Leasing

Modest diversification

The 3 months correlation between AUSNUTRIA and Sixt is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AUSNUTRIA DAIRY and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE and AUSNUTRIA DAIRY 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 AUSNUTRIA DAIRY are associated (or correlated) with Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of AUSNUTRIA DAIRY i.e., AUSNUTRIA DAIRY and Sixt Leasing go up and down completely randomly.

Pair Corralation between AUSNUTRIA DAIRY and Sixt Leasing

Assuming the 90 days trading horizon AUSNUTRIA DAIRY is expected to under-perform the Sixt Leasing. In addition to that, AUSNUTRIA DAIRY is 1.34 times more volatile than Sixt Leasing SE. It trades about -0.03 of its total potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.02 per unit of volatility. If you would invest  1,142  in Sixt Leasing SE on September 25, 2024 and sell it today you would lose (202.00) from holding Sixt Leasing SE or give up 17.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

AUSNUTRIA DAIRY  vs.  Sixt Leasing SE

AUSNUTRIA DAIRY

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AUSNUTRIA DAIRY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical indicators, AUSNUTRIA DAIRY is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Sixt Leasing SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sixt Leasing SE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with AUSNUTRIA DAIRY and Sixt Leasing

The main advantage of trading using opposite AUSNUTRIA DAIRY and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUSNUTRIA DAIRY position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.

The idea behind AUSNUTRIA DAIRY and Sixt Leasing SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.