Correlation Between Aldel Financial and Triton International
Can any of the company-specific risk be diversified away by investing in both Aldel Financial and Triton 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 Aldel Financial and Triton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aldel Financial II and Triton International Limited, you can compare the effects of market volatilities on Aldel Financial and Triton 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 Aldel Financial with a short position of Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aldel Financial and Triton International.
Diversification Opportunities for Aldel Financial and Triton International
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aldel and Triton is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aldel Financial II and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International and Aldel Financial 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 Aldel Financial II are associated (or correlated) with Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of Aldel Financial i.e., Aldel Financial and Triton International go up and down completely randomly.
Pair Corralation between Aldel Financial and Triton International
Assuming the 90 days horizon Aldel Financial is expected to generate 3.23 times less return on investment than Triton International. But when comparing it to its historical volatility, Aldel Financial II is 12.18 times less risky than Triton International. It trades about 0.11 of its potential returns per unit of risk. Triton International Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,166 in Triton International Limited on August 26, 2024 and sell it today you would earn a total of 349.00 from holding Triton International Limited or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.03% |
| Values | Daily Returns |
Aldel Financial II vs. Triton International Limited
Performance |
| Timeline |
| Aldel Financial II |
| Triton International |
Aldel Financial and Triton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aldel Financial and Triton International
The main advantage of trading using opposite Aldel Financial and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aldel Financial position performs unexpectedly, Triton 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 Triton International will offset losses from the drop in Triton International's long position.| Aldel Financial vs. dMY Squared Technology | Aldel Financial vs. Vine Hill Capital | Aldel Financial vs. DP Cap Acquisition | Aldel Financial vs. PowerUp Acquisition Corp |
| Triton International vs. Triton International Limited | Triton International vs. Triton International Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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