Correlation Between HyreCar and Custom Truck
Can any of the company-specific risk be diversified away by investing in both HyreCar and Custom Truck 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 HyreCar and Custom Truck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HyreCar and Custom Truck One, you can compare the effects of market volatilities on HyreCar and Custom Truck 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 HyreCar with a short position of Custom Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of HyreCar and Custom Truck.
Diversification Opportunities for HyreCar and Custom Truck
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HyreCar and Custom is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding HyreCar and Custom Truck One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Custom Truck One and HyreCar 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 HyreCar are associated (or correlated) with Custom Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Custom Truck One has no effect on the direction of HyreCar i.e., HyreCar and Custom Truck go up and down completely randomly.
Pair Corralation between HyreCar and Custom Truck
Assuming the 90 days horizon HyreCar is expected to under-perform the Custom Truck. In addition to that, HyreCar is 3.34 times more volatile than Custom Truck One. It trades about -0.13 of its total potential returns per unit of risk. Custom Truck One is currently generating about 0.2 per unit of volatility. If you would invest 388.00 in Custom Truck One on September 2, 2024 and sell it today you would earn a total of 210.00 from holding Custom Truck One or generate 54.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
HyreCar vs. Custom Truck One
Performance |
| Timeline |
| HyreCar |
| Custom Truck One |
HyreCar and Custom Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HyreCar and Custom Truck
The main advantage of trading using opposite HyreCar and Custom Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HyreCar position performs unexpectedly, Custom Truck 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 Custom Truck will offset losses from the drop in Custom Truck's long position.| HyreCar vs. National Vision Holdings | HyreCar vs. Century Aluminum | HyreCar vs. Asbury Automotive Group | HyreCar vs. Valvoline |
| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. HE Equipment Services | Custom Truck vs. GATX Corporation |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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