Correlation Between Cellebrite and Alta Equipment
Can any of the company-specific risk be diversified away by investing in both Cellebrite and Alta Equipment 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 Cellebrite and Alta Equipment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cellebrite DI Equity and Alta Equipment Group, you can compare the effects of market volatilities on Cellebrite and Alta Equipment 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 Cellebrite with a short position of Alta Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cellebrite and Alta Equipment.
Diversification Opportunities for Cellebrite and Alta Equipment
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cellebrite and Alta is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cellebrite DI Equity and Alta Equipment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Equipment Group and Cellebrite 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 Cellebrite DI Equity are associated (or correlated) with Alta Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Equipment Group has no effect on the direction of Cellebrite i.e., Cellebrite and Alta Equipment go up and down completely randomly.
Pair Corralation between Cellebrite and Alta Equipment
If you would invest 645.00 in Alta Equipment Group on September 1, 2024 and sell it today you would earn a total of 146.00 from holding Alta Equipment Group or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cellebrite DI Equity vs. Alta Equipment Group
Performance |
| Timeline |
| Cellebrite DI Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alta Equipment Group |
Cellebrite and Alta Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cellebrite and Alta Equipment
The main advantage of trading using opposite Cellebrite and Alta Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cellebrite position performs unexpectedly, Alta Equipment 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 Alta Equipment will offset losses from the drop in Alta Equipment's long position.| Cellebrite vs. Ryman Hospitality Properties | Cellebrite vs. Bt Brands | Cellebrite vs. Simpson Manufacturing | Cellebrite vs. Dave Busters Entertainment |
| Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Herc Holdings | Alta Equipment vs. GATX Corporation | Alta Equipment vs. PROG 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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