Correlation Between Custom Truck and Triton International
Can any of the company-specific risk be diversified away by investing in both Custom Truck and Triton International 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 Triton International 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 Triton International Limited, you can compare the effects of market volatilities on Custom Truck and Triton International 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 Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and Triton International.
Diversification Opportunities for Custom Truck and Triton International
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Custom and Triton is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International 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 Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of Custom Truck i.e., Custom Truck and Triton International go up and down completely randomly.
Pair Corralation between Custom Truck and Triton International
Given the investment horizon of 90 days Custom Truck One is expected to generate 11.25 times more return on investment than Triton International. However, Custom Truck is 11.25 times more volatile than Triton International Limited. It trades about 0.08 of its potential returns per unit of risk. Triton International Limited is currently generating about 0.09 per unit of risk. If you would invest 476.00 in Custom Truck One on November 18, 2024 and sell it today you would earn a total of 26.00 from holding Custom Truck One or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Custom Truck One vs. Triton International Limited
Performance |
| Timeline |
| Custom Truck One |
| Triton International |
Custom Truck and Triton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and Triton International
The main advantage of trading using opposite Custom Truck and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck position performs unexpectedly, Triton International 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 Triton International will offset losses from the drop in Triton International's long position.| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. HE Equipment Services | Custom Truck vs. GATX Corporation |
| Triton International vs. Triton International Limited | Triton International vs. Triton International Limited | Triton International vs. Triton International Limited | Triton International vs. Costamare |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |