Correlation Between Multi Ways and McGrath RentCorp
Can any of the company-specific risk be diversified away by investing in both Multi Ways and McGrath RentCorp 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 Multi Ways and McGrath RentCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Ways Holdings and McGrath RentCorp, you can compare the effects of market volatilities on Multi Ways and McGrath RentCorp 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 Multi Ways with a short position of McGrath RentCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Ways and McGrath RentCorp.
Diversification Opportunities for Multi Ways and McGrath RentCorp
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Multi and McGrath is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Multi Ways Holdings and McGrath RentCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McGrath RentCorp and Multi Ways 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 Multi Ways Holdings are associated (or correlated) with McGrath RentCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McGrath RentCorp has no effect on the direction of Multi Ways i.e., Multi Ways and McGrath RentCorp go up and down completely randomly.
Pair Corralation between Multi Ways and McGrath RentCorp
Considering the 90-day investment horizon Multi Ways Holdings is expected to under-perform the McGrath RentCorp. In addition to that, Multi Ways is 3.66 times more volatile than McGrath RentCorp. It trades about -0.08 of its total potential returns per unit of risk. McGrath RentCorp is currently generating about 0.13 per unit of volatility. If you would invest 10,447 in McGrath RentCorp on September 2, 2024 and sell it today you would earn a total of 1,738 from holding McGrath RentCorp or generate 16.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Ways Holdings vs. McGrath RentCorp
Performance |
| Timeline |
| Multi Ways Holdings |
| McGrath RentCorp |
Multi Ways and McGrath RentCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Ways and McGrath RentCorp
The main advantage of trading using opposite Multi Ways and McGrath RentCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Ways position performs unexpectedly, McGrath RentCorp 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 McGrath RentCorp will offset losses from the drop in McGrath RentCorp's long position.| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
| McGrath RentCorp vs. Alta Equipment Group | McGrath RentCorp vs. GATX Corporation | McGrath RentCorp vs. Mega Matrix Corp | McGrath RentCorp 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |