Correlation Between Custom Truck and GigCapital5
Can any of the company-specific risk be diversified away by investing in both Custom Truck and GigCapital5 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 Custom Truck and GigCapital5 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Custom Truck One and GigCapital5, you can compare the effects of market volatilities on Custom Truck and GigCapital5 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 Custom Truck with a short position of GigCapital5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and GigCapital5.
Diversification Opportunities for Custom Truck and GigCapital5
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Custom and GigCapital5 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and GigCapital5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigCapital5 and Custom Truck 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 Custom Truck One are associated (or correlated) with GigCapital5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigCapital5 has no effect on the direction of Custom Truck i.e., Custom Truck and GigCapital5 go up and down completely randomly.
Pair Corralation between Custom Truck and GigCapital5
If you would invest 363.00 in Custom Truck One on August 30, 2024 and sell it today you would earn a total of 237.00 from holding Custom Truck One or generate 65.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Custom Truck One vs. GigCapital5
Performance |
| Timeline |
| Custom Truck One |
| GigCapital5 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Custom Truck and GigCapital5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and GigCapital5
The main advantage of trading using opposite Custom Truck and GigCapital5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck position performs unexpectedly, GigCapital5 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 GigCapital5 will offset losses from the drop in GigCapital5's long position.| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. HE Equipment Services | Custom Truck vs. GATX Corporation |
| GigCapital5 vs. Valneva SE ADR | GigCapital5 vs. Payoneer Global | GigCapital5 vs. Uber Technologies | GigCapital5 vs. Usio Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |