Correlation Between Alta Equipment and Textainer Group
Can any of the company-specific risk be diversified away by investing in both Alta Equipment and Textainer 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 Alta Equipment and Textainer Group 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 Textainer Group Holdings, you can compare the effects of market volatilities on Alta Equipment and Textainer 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 Alta Equipment with a short position of Textainer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta Equipment and Textainer Group.
Diversification Opportunities for Alta Equipment and Textainer Group
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alta and Textainer is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Alta Equipment Group and Textainer Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Textainer Group Holdings 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 Textainer Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Textainer Group Holdings has no effect on the direction of Alta Equipment i.e., Alta Equipment and Textainer Group go up and down completely randomly.
Pair Corralation between Alta Equipment and Textainer Group
If you would invest 665.00 in Alta Equipment Group on August 27, 2024 and sell it today you would earn a total of 126.00 from holding Alta Equipment Group or generate 18.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Alta Equipment Group vs. Textainer Group Holdings
Performance |
| Timeline |
| Alta Equipment Group |
| Textainer Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alta Equipment and Textainer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alta Equipment and Textainer Group
The main advantage of trading using opposite Alta Equipment and Textainer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Equipment position performs unexpectedly, Textainer 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 Textainer Group will offset losses from the drop in Textainer Group's long position.| Alta Equipment vs. PROG Holdings | Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Mega Matrix Corp | Alta Equipment vs. FTAI Aviation Ltd |
| Textainer Group vs. Ryder System | Textainer Group vs. Triton International Limited | Textainer Group vs. Air Lease | Textainer Group vs. Herc Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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