Correlation Between Power Solutions and Jungheinrich Aktiengesellscha

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

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

Diversification Opportunities for Power Solutions and Jungheinrich Aktiengesellscha

-0.16

Correlation Coefficient

Power Solutions  Jungheinrich Aktiengesellscha

Good diversification

The 3 months correlation between Power and Jungheinrich is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Power Solutions International, and Jungheinrich Aktiengesellschaf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jungheinrich Aktiengesellscha and Power Solutions 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 Power Solutions International, are associated (or correlated) with Jungheinrich Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jungheinrich Aktiengesellscha has no effect on the direction of Power Solutions i.e., Power Solutions and Jungheinrich Aktiengesellscha go up and down completely randomly.

Pair Corralation between Power Solutions and Jungheinrich Aktiengesellscha

Given the investment horizon of 90 days Power Solutions International, is expected to under-perform the Jungheinrich Aktiengesellscha. In addition to that, Power Solutions is 2.89 times more volatile than Jungheinrich Aktiengesellschaft. It trades about -0.09 of its total potential returns per unit of risk. Jungheinrich Aktiengesellschaft is currently generating about -0.12 per unit of volatility. If you would invest  3,980  in Jungheinrich Aktiengesellschaft on August 18, 2025 and sell it today you would lose (596.00) from holding Jungheinrich Aktiengesellschaft or give up 14.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Power Solutions International,  vs.  Jungheinrich Aktiengesellschaf

Power Solutions Inte

Risk-Adjusted Performance

Weakest

Over the last 90 days Power Solutions International, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Jungheinrich Aktiengesellscha

Risk-Adjusted Performance

Weakest

Over the last 90 days Jungheinrich Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Power Solutions and Jungheinrich Aktiengesellscha

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

The idea behind Power Solutions International, and Jungheinrich Aktiengesellschaft 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.