Correlation Between AmeraMex International and Textainer Group
Can any of the company-specific risk be diversified away by investing in both AmeraMex International 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 AmeraMex International and Textainer Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmeraMex International and Textainer Group Holdings, you can compare the effects of market volatilities on AmeraMex International 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 AmeraMex International with a short position of Textainer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmeraMex International and Textainer Group.
Diversification Opportunities for AmeraMex International and Textainer Group
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AmeraMex and Textainer is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding AmeraMex International 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 AmeraMex International 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 AmeraMex International 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 AmeraMex International i.e., AmeraMex International and Textainer Group go up and down completely randomly.
Pair Corralation between AmeraMex International and Textainer Group
Given the investment horizon of 90 days AmeraMex International is expected to under-perform the Textainer Group. In addition to that, AmeraMex International is 1.24 times more volatile than Textainer Group Holdings. It trades about -0.26 of its total potential returns per unit of risk. Textainer Group Holdings is currently generating about -0.06 per unit of volatility. If you would invest 74.00 in Textainer Group Holdings on October 20, 2024 and sell it today you would lose (4.00) from holding Textainer Group Holdings or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
AmeraMex International vs. Textainer Group Holdings
Performance |
| Timeline |
| AmeraMex International |
| Textainer Group Holdings |
AmeraMex International and Textainer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AmeraMex International and Textainer Group
The main advantage of trading using opposite AmeraMex International and Textainer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmeraMex International 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.| AmeraMex International vs. First Tractor | AmeraMex International vs. Ag Growth International | AmeraMex International vs. Arts Way Manufacturing Co | AmeraMex International vs. American Premium Water |
| Textainer Group vs. Buhler Industries | Textainer Group vs. Austin Engineering Limited | Textainer Group vs. Ag Growth International | Textainer Group vs. Grow Solutions 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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