Correlation Between Custom Truck and Multi Ways
Can any of the company-specific risk be diversified away by investing in both Custom Truck and Multi Ways 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 Multi Ways 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 Multi Ways Holdings, you can compare the effects of market volatilities on Custom Truck and Multi Ways 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 Multi Ways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and Multi Ways.
Diversification Opportunities for Custom Truck and Multi Ways
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Custom and Multi is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and Multi Ways Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Ways Holdings 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 Multi Ways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Ways Holdings has no effect on the direction of Custom Truck i.e., Custom Truck and Multi Ways go up and down completely randomly.
Pair Corralation between Custom Truck and Multi Ways
Given the investment horizon of 90 days Custom Truck One is expected to generate 0.36 times more return on investment than Multi Ways. However, Custom Truck One is 2.79 times less risky than Multi Ways. It trades about 0.0 of its potential returns per unit of risk. Multi Ways Holdings is currently generating about -0.04 per unit of risk. If you would invest 706.00 in Custom Truck One on November 2, 2024 and sell it today you would lose (175.00) from holding Custom Truck One or give up 24.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.91% |
| Values | Daily Returns |
Custom Truck One vs. Multi Ways Holdings
Performance |
| Timeline |
| Custom Truck One |
| Multi Ways Holdings |
Custom Truck and Multi Ways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and Multi Ways
The main advantage of trading using opposite Custom Truck and Multi Ways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck position performs unexpectedly, Multi Ways 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 Multi Ways will offset losses from the drop in Multi Ways' long position.| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. HE Equipment Services | Custom Truck vs. GATX Corporation |
| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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