Correlation Between Custom Truck and Vestis
Can any of the company-specific risk be diversified away by investing in both Custom Truck and Vestis 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 Vestis 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 Vestis, you can compare the effects of market volatilities on Custom Truck and Vestis 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 Vestis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Custom Truck and Vestis.
Diversification Opportunities for Custom Truck and Vestis
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Custom and Vestis is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Custom Truck One and Vestis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestis 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 Vestis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestis has no effect on the direction of Custom Truck i.e., Custom Truck and Vestis go up and down completely randomly.
Pair Corralation between Custom Truck and Vestis
Given the investment horizon of 90 days Custom Truck One is expected to generate 0.86 times more return on investment than Vestis. However, Custom Truck One is 1.16 times less risky than Vestis. It trades about 0.02 of its potential returns per unit of risk. Vestis is currently generating about 0.01 per unit of risk. If you would invest 581.00 in Custom Truck One on August 26, 2024 and sell it today you would lose (9.00) from holding Custom Truck One or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Custom Truck One vs. Vestis
Performance |
| Timeline |
| Custom Truck One |
| Vestis |
Custom Truck and Vestis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Custom Truck and Vestis
The main advantage of trading using opposite Custom Truck and Vestis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Custom Truck position performs unexpectedly, Vestis 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 Vestis will offset losses from the drop in Vestis' long position.| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. Mega Matrix Corp | Custom Truck vs. FTAI Aviation Ltd |
| Vestis vs. PROG Holdings | Vestis vs. McGrath RentCorp | Vestis vs. Mega Matrix Corp | Vestis vs. FTAI Aviation Ltd |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |