Correlation Between McGrath RentCorp and SEAGATE
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By analyzing existing cross correlation between McGrath RentCorp and SEAGATE HDD CAYMAN, you can compare the effects of market volatilities on McGrath RentCorp and SEAGATE 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 McGrath RentCorp with a short position of SEAGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of McGrath RentCorp and SEAGATE.
Diversification Opportunities for McGrath RentCorp and SEAGATE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between McGrath and SEAGATE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding McGrath RentCorp and SEAGATE HDD CAYMAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAGATE HDD CAYMAN and McGrath RentCorp 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 McGrath RentCorp are associated (or correlated) with SEAGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAGATE HDD CAYMAN has no effect on the direction of McGrath RentCorp i.e., McGrath RentCorp and SEAGATE go up and down completely randomly.
Pair Corralation between McGrath RentCorp and SEAGATE
Given the investment horizon of 90 days McGrath RentCorp is expected to generate 0.7 times more return on investment than SEAGATE. However, McGrath RentCorp is 1.44 times less risky than SEAGATE. It trades about 0.41 of its potential returns per unit of risk. SEAGATE HDD CAYMAN is currently generating about -0.2 per unit of risk. If you would invest 11,211 in McGrath RentCorp on October 25, 2024 and sell it today you would earn a total of 1,096 from holding McGrath RentCorp or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
McGrath RentCorp vs. SEAGATE HDD CAYMAN
Performance |
| Timeline |
| McGrath RentCorp |
| SEAGATE HDD CAYMAN |
McGrath RentCorp and SEAGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McGrath RentCorp and SEAGATE
The main advantage of trading using opposite McGrath RentCorp and SEAGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McGrath RentCorp position performs unexpectedly, SEAGATE 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 SEAGATE will offset losses from the drop in SEAGATE's long position.| McGrath RentCorp vs. Alta Equipment Group | McGrath RentCorp vs. GATX Corporation | McGrath RentCorp vs. Mega Matrix Corp | McGrath RentCorp vs. FTAI Aviation Ltd |
| SEAGATE vs. Alaska Air Group | SEAGATE vs. Sealed Air | SEAGATE vs. Origin Materials | SEAGATE vs. Sensient Technologies |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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