Correlation Between GATX and Global Ship
Can any of the company-specific risk be diversified away by investing in both GATX and Global Ship 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 GATX and Global Ship into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GATX Corporation and Global Ship Lease, you can compare the effects of market volatilities on GATX and Global Ship 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 GATX with a short position of Global Ship. Check out your portfolio center. Please also check ongoing floating volatility patterns of GATX and Global Ship.
Diversification Opportunities for GATX and Global Ship
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GATX and Global is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GATX Corp. and Global Ship Lease in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ship Lease and GATX 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 GATX Corporation are associated (or correlated) with Global Ship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ship Lease has no effect on the direction of GATX i.e., GATX and Global Ship go up and down completely randomly.
Pair Corralation between GATX and Global Ship
If you would invest 10,678 in GATX Corporation on August 26, 2024 and sell it today you would earn a total of 5,481 from holding GATX Corporation or generate 51.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
GATX Corp. vs. Global Ship Lease
Performance |
| Timeline |
| GATX |
| Global Ship Lease |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GATX and Global Ship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GATX and Global Ship
The main advantage of trading using opposite GATX and Global Ship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GATX position performs unexpectedly, Global Ship 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 Global Ship will offset losses from the drop in Global Ship's long position.| GATX vs. Custom Truck One | GATX vs. HE Equipment Services | GATX vs. Alta Equipment Group | GATX vs. McGrath RentCorp |
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.
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