Correlation Between Sixt SE and Sixt SE

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

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

Diversification Opportunities for Sixt SE and Sixt SE

0.74

Correlation Coefficient

Sixt SE  Sixt SE

Poor diversification

The 3 months correlation between Sixt and Sixt is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 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 Sixt SE i.e., Sixt SE and Sixt SE go up and down completely randomly.

Pair Corralation between Sixt SE and Sixt SE

Assuming the 90 days trading horizon Sixt SE is expected to generate 1.89 times less return on investment than Sixt SE. But when comparing it to its historical volatility, Sixt SE is 1.13 times less risky than Sixt SE. It trades about 0.03 of its potential returns per unit of risk. Sixt SE is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  7,835  in Sixt SE on December 27, 2024 and sell it today you would earn a total of  380.00  from holding Sixt SE or generate 4.85% return on investment over 90 days.

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

Sixt SE  vs.  Sixt SE

Sixt SE

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sixt SE are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Sixt SE is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sixt SE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sixt SE are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Sixt SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Sixt SE and Sixt SE

The main advantage of trading using opposite Sixt SE and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE 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 Sixt SE 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.