Correlation Between GATX and Space-Communication
Can any of the company-specific risk be diversified away by investing in both GATX and Space-Communication 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 Space-Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GATX Corporation and Space Communication, you can compare the effects of market volatilities on GATX and Space-Communication 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 Space-Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of GATX and Space-Communication.
Diversification Opportunities for GATX and Space-Communication
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GATX and Space-Communication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GATX Corp. and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space-Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of GATX i.e., GATX and Space-Communication go up and down completely randomly.
Pair Corralation between GATX and Space-Communication
If you would invest 15,283 in GATX Corporation on November 7, 2024 and sell it today you would earn a total of 1,264 from holding GATX Corporation or generate 8.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
GATX Corp. vs. Space Communication
Performance |
| Timeline |
| GATX |
| Space Communication |
GATX and Space-Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GATX and Space-Communication
The main advantage of trading using opposite GATX and Space-Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GATX position performs unexpectedly, Space-Communication 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 Space-Communication will offset losses from the drop in Space-Communication's long position.| GATX vs. Custom Truck One | GATX vs. HE Equipment Services | GATX vs. Alta Equipment Group | GATX vs. McGrath RentCorp |
| Space-Communication vs. Magyar Telekom Plc | Space-Communication vs. Singapore Telecommunications PK | Space-Communication vs. Hellenic Telecommunications Org | Space-Communication vs. Softbank Group Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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