Correlation Between Sixt SE and Ashtead Group
Can any of the company-specific risk be diversified away by investing in both Sixt SE and Ashtead Group 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 Ashtead Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixt SE and Ashtead Group plc, you can compare the effects of market volatilities on Sixt SE and Ashtead Group 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 Ashtead Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixt SE and Ashtead Group.
Diversification Opportunities for Sixt SE and Ashtead Group
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sixt and Ashtead is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sixt SE and Ashtead Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ashtead Group plc 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 Ashtead Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ashtead Group plc has no effect on the direction of Sixt SE i.e., Sixt SE and Ashtead Group go up and down completely randomly.
Pair Corralation between Sixt SE and Ashtead Group
Assuming the 90 days trading horizon Sixt SE is expected to generate 1.13 times more return on investment than Ashtead Group. However, Sixt SE is 1.13 times more volatile than Ashtead Group plc. It trades about 0.28 of its potential returns per unit of risk. Ashtead Group plc is currently generating about 0.2 per unit of risk. If you would invest 5,660 in Sixt SE on April 25, 2025 and sell it today you would earn a total of 710.00 from holding Sixt SE or generate 12.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sixt SE vs. Ashtead Group plc
Performance |
Timeline |
Sixt SE |
Ashtead Group plc |
Sixt SE and Ashtead Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sixt SE and Ashtead Group
The main advantage of trading using opposite Sixt SE and Ashtead Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixt SE position performs unexpectedly, Ashtead Group 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 Ashtead Group will offset losses from the drop in Ashtead Group's long position.Sixt SE vs. ALBIS LEASING AG | Sixt SE vs. G III Apparel Group | Sixt SE vs. Apollo Investment Corp | Sixt SE vs. tokentus investment AG |
Ashtead Group vs. SEI INVESTMENTS | Ashtead Group vs. Collins Foods Limited | Ashtead Group vs. Astral Foods Limited | Ashtead Group vs. Axfood AB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |