Correlation Between Sixt SE and CK HUTCHISON
Can any of the company-specific risk be diversified away by investing in both Sixt SE and CK HUTCHISON 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 Sixt SE and CK HUTCHISON into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and CK HUTCHISON HLDGS, you can compare the effects of market volatilities on Sixt SE and CK HUTCHISON 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 Sixt SE with a short position of CK HUTCHISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and CK HUTCHISON.
Diversification Opportunities for Sixt SE and CK HUTCHISON
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sixt and 2CKA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and CK HUTCHISON HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK HUTCHISON HLDGS and Sixt SE 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 Sixt SE are associated (or correlated) with CK HUTCHISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK HUTCHISON HLDGS has no effect on the direction of Sixt SE i.e., Sixt SE and CK HUTCHISON go up and down completely randomly.
Pair Corralation between Sixt SE and CK HUTCHISON
Assuming the 90 days trading horizon Sixt SE is expected to generate 1.97 times less return on investment than CK HUTCHISON. But when comparing it to its historical volatility, Sixt SE is 1.12 times less risky than CK HUTCHISON. It trades about 0.01 of its potential returns per unit of risk. CK HUTCHISON HLDGS is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 481.00 in CK HUTCHISON HLDGS on September 23, 2024 and sell it today you would lose (7.00) from holding CK HUTCHISON HLDGS or give up 1.46% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sixt SE vs. CK HUTCHISON HLDGS
Performance |
Timeline |
Sixt SE |
CK HUTCHISON HLDGS |
Sixt SE and CK HUTCHISON Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sixt SE and CK HUTCHISON
The main advantage of trading using opposite Sixt SE and CK HUTCHISON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, CK HUTCHISON 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 CK HUTCHISON will offset losses from the drop in CK HUTCHISON's long position.Sixt SE vs. Ashtead Group plc | Sixt SE vs. WillScot Mobile Mini | Sixt SE vs. Avis Budget Group | Sixt SE vs. Sixt SE |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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