Correlation Between Alta Equipment and NUCOR
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By analyzing existing cross correlation between Alta Equipment Group and NUCOR P 395, you can compare the effects of market volatilities on Alta Equipment and NUCOR 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 NUCOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta Equipment and NUCOR.
Diversification Opportunities for Alta Equipment and NUCOR
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alta and NUCOR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Alta Equipment Group and NUCOR P 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUCOR P 5 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 NUCOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUCOR P 5 has no effect on the direction of Alta Equipment i.e., Alta Equipment and NUCOR go up and down completely randomly.
Pair Corralation between Alta Equipment and NUCOR
Given the investment horizon of 90 days Alta Equipment Group is expected to generate 12.74 times more return on investment than NUCOR. However, Alta Equipment is 12.74 times more volatile than NUCOR P 395. It trades about 0.11 of its potential returns per unit of risk. NUCOR P 395 is currently generating about -0.09 per unit of risk. If you would invest 614.00 in Alta Equipment Group on September 12, 2024 and sell it today you would earn a total of 154.00 from holding Alta Equipment Group or generate 25.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
Alta Equipment Group vs. NUCOR P 395
Performance |
| Timeline |
| Alta Equipment Group |
| NUCOR P 5 |
Alta Equipment and NUCOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alta Equipment and NUCOR
The main advantage of trading using opposite Alta Equipment and NUCOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Equipment position performs unexpectedly, NUCOR 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 NUCOR will offset losses from the drop in NUCOR's long position.| Alta Equipment vs. PROG Holdings | Alta Equipment vs. GATX Corporation | Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Custom Truck One |
| NUCOR vs. AEP TEX INC | NUCOR vs. US BANK NATIONAL | NUCOR vs. Applied Blockchain | NUCOR vs. BigBearai 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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