Correlation Between Martin Marietta and Hyster Yale

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

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

Diversification Opportunities for Martin Marietta and Hyster Yale

0.68

Correlation Coefficient

Martin Marietta  Hyster Yale

Poor diversification

The 3 months correlation between Martin and Hyster is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials 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 Martin Marietta 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 Martin Marietta Materials 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 Martin Marietta i.e., Martin Marietta and Hyster Yale go up and down completely randomly.

Pair Corralation between Martin Marietta and Hyster Yale

Assuming the 90 days trading horizon Martin Marietta is expected to generate 1.02 times less return on investment than Hyster Yale. But when comparing it to its historical volatility, Martin Marietta Materials is 1.59 times less risky than Hyster Yale. It trades about 0.1 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,291  in Hyster Yale Materials Handling on April 17, 2025 and sell it today you would earn a total of  269.00  from holding Hyster Yale Materials Handling or generate 8.17% return on investment over 90 days.

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

Martin Marietta Materials  vs.  Hyster Yale Materials Handling

Martin Marietta Materials

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Marietta Materials are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Martin Marietta may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Hyster Yale Materials

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hyster Yale Materials Handling are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Hyster Yale may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Martin Marietta and Hyster Yale

The main advantage of trading using opposite Martin Marietta and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta 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 Martin Marietta Materials 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.