Correlation Between Daimler Truck and Hays Plc

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

By analyzing existing cross correlation between Daimler Truck Holding and Hays plc, you can compare the effects of market volatilities on Daimler Truck and Hays Plc 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 Daimler Truck with a short position of Hays Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daimler Truck and Hays Plc.

Diversification Opportunities for Daimler Truck and Hays Plc

0.0

Correlation Coefficient

Daimler Truck  Hays Plc

Pay attention - limited upside

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

Pair Corralation between Daimler Truck and Hays Plc

If you would invest  93.00  in Hays plc on December 28, 2024 and sell it today you would earn a total of  5.00  from holding Hays plc or generate 5.38% return on investment over 90 days.

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

Daimler Truck Holding  vs.  Hays plc

Daimler Truck Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Daimler Truck Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Daimler Truck is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Hays plc

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hays plc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Hays Plc may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Daimler Truck and Hays Plc

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

The idea behind Daimler Truck Holding and Hays plc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.