Correlation Between Hyster Yale and Manitex International

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

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

Diversification Opportunities for Hyster Yale and Manitex International

0.26

Correlation Coefficient

Hyster Yale  Manitex International

Modest diversification

The 3 months correlation between Hyster and Manitex is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Manitex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitex International and Hyster Yale 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 Hyster Yale Materials Handling are associated (or correlated) with Manitex International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitex International has no effect on the direction of Hyster Yale i.e., Hyster Yale and Manitex International go up and down completely randomly.

Pair Corralation between Hyster Yale and Manitex International

Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to generate 0.8 times more return on investment than Manitex International. However, Hyster Yale Materials Handling is 1.25 times less risky than Manitex International. It trades about 0.06 of its potential returns per unit of risk. Manitex International is currently generating about 0.02 per unit of risk. If you would invest  3,572  in Hyster Yale Materials Handling on February 16, 2024 and sell it today you would earn a total of  4,048  from holding Hyster Yale Materials Handling or generate 113.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Hyster Yale Materials Handling  vs.  Manitex International

Hyster Yale Materials

Risk-Adjusted Performance

4 of 100

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. In spite of fairly uncertain basic indicators, Hyster Yale showed solid returns over the last few months and may actually be approaching a breakup point.

Manitex International

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Manitex International are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Manitex International may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Hyster Yale and Manitex International

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

The idea behind Hyster Yale Materials Handling and Manitex International 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 CEOs Directory module to screen CEOs from public companies around the world.