Correlation Between Alumina Limited and Textainer Group
Can any of the company-specific risk be diversified away by investing in both Alumina Limited 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 Alumina Limited and Textainer Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alumina Limited PK and Textainer Group Holdings, you can compare the effects of market volatilities on Alumina Limited 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 Alumina Limited with a short position of Textainer Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alumina Limited and Textainer Group.
Diversification Opportunities for Alumina Limited and Textainer Group
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alumina and Textainer is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Alumina Limited PK 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 Alumina Limited 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 Alumina Limited PK 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 Alumina Limited i.e., Alumina Limited and Textainer Group go up and down completely randomly.
Pair Corralation between Alumina Limited and Textainer Group
Assuming the 90 days horizon Alumina Limited PK is expected to under-perform the Textainer Group. In addition to that, Alumina Limited is 1.74 times more volatile than Textainer Group Holdings. It trades about -0.01 of its total potential returns per unit of risk. Textainer Group Holdings is currently generating about 0.12 per unit of volatility. If you would invest 3,274 in Textainer Group Holdings on August 27, 2024 and sell it today you would earn a total of 817.00 from holding Textainer Group Holdings or generate 24.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.2% |
| Values | Daily Returns |
Alumina Limited PK vs. Textainer Group Holdings
Performance |
| Timeline |
| Alumina Limited PK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Textainer Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Alumina Limited and Textainer Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alumina Limited and Textainer Group
The main advantage of trading using opposite Alumina Limited and Textainer Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alumina Limited 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.| Alumina Limited vs. Anhui Conch Cement | Alumina Limited vs. Asahi Kaisei Corp | Alumina Limited vs. Covestro ADR |
| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |