Correlation Between MAVEN WIRELESS and Hyster Yale

Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS 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 MAVEN WIRELESS and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and Hyster Yale Materials Handling, you can compare the effects of market volatilities on MAVEN WIRELESS 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 MAVEN WIRELESS with a short position of Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and Hyster Yale.

Diversification Opportunities for MAVEN WIRELESS and Hyster Yale

0.56

Correlation Coefficient

MAVEN WIRELESS  Hyster Yale

Very weak diversification

The 3 months correlation between MAVEN and Hyster is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN 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 MAVEN WIRELESS i.e., MAVEN WIRELESS and Hyster Yale go up and down completely randomly.

Pair Corralation between MAVEN WIRELESS and Hyster Yale

Assuming the 90 days horizon MAVEN WIRELESS is expected to generate 7.51 times less return on investment than Hyster Yale. But when comparing it to its historical volatility, MAVEN WIRELESS SWEDEN is 1.05 times less risky than Hyster Yale. It trades about 0.01 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  2,890  in Hyster Yale Materials Handling on October 25, 2024 and sell it today you would earn a total of  2,310  from holding Hyster Yale Materials Handling or generate 79.93% return on investment over 90 days.

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

MAVEN WIRELESS SWEDEN  vs.  Hyster Yale Materials Handling

MAVEN WIRELESS SWEDEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAVEN WIRELESS SWEDEN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MAVEN WIRELESS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Hyster Yale Materials

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hyster Yale Materials Handling has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with MAVEN WIRELESS and Hyster Yale

The main advantage of trading using opposite MAVEN WIRELESS and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS 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.

The idea behind MAVEN WIRELESS SWEDEN and Hyster Yale Materials Handling 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.