Correlation Between Alta Equipment and Mediag3
Can any of the company-specific risk be diversified away by investing in both Alta Equipment and Mediag3 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 Alta Equipment and Mediag3 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alta Equipment Group and Mediag3, you can compare the effects of market volatilities on Alta Equipment and Mediag3 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 Alta Equipment with a short position of Mediag3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta Equipment and Mediag3.
Diversification Opportunities for Alta Equipment and Mediag3
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alta and Mediag3 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alta Equipment Group and Mediag3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediag3 and Alta Equipment 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 Alta Equipment Group are associated (or correlated) with Mediag3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediag3 has no effect on the direction of Alta Equipment i.e., Alta Equipment and Mediag3 go up and down completely randomly.
Pair Corralation between Alta Equipment and Mediag3
If you would invest 623.00 in Alta Equipment Group on August 24, 2024 and sell it today you would earn a total of 168.00 from holding Alta Equipment Group or generate 26.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Alta Equipment Group vs. Mediag3
Performance |
| Timeline |
| Alta Equipment Group |
| Mediag3 |
Alta Equipment and Mediag3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alta Equipment and Mediag3
The main advantage of trading using opposite Alta Equipment and Mediag3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Equipment position performs unexpectedly, Mediag3 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 Mediag3 will offset losses from the drop in Mediag3's long position.| Alta Equipment vs. PROG Holdings | Alta Equipment vs. GATX Corporation | Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Custom Truck One |
| Mediag3 vs. Alta Equipment Group | Mediag3 vs. SEI Investments | Mediag3 vs. Montauk Renewables | Mediag3 vs. MGIC Investment Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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