Correlation Between Computer and Sixt SE

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

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

Diversification Opportunities for Computer and Sixt SE

0.0

Correlation Coefficient

Computer  Sixt SE

Pay attention - limited upside

The 3 months correlation between Computer and Sixt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Computer And Technologies and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE and Computer 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 Computer And Technologies are associated (or correlated) with Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Computer i.e., Computer and Sixt SE go up and down completely randomly.

Pair Corralation between Computer and Sixt SE

If you would invest (100.00) in Sixt SE on October 4, 2024 and sell it today you would earn a total of  100.00  from holding Sixt SE or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Computer And Technologies  vs.  Sixt SE

Computer And Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Computer And Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Sixt SE

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sixt SE are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sixt SE may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Computer and Sixt SE

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

The idea behind Computer And Technologies and Sixt 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.