Correlation Between Textainer Group and Ag Growth
Can any of the company-specific risk be diversified away by investing in both Textainer Group and Ag Growth 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 Textainer Group and Ag Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Textainer Group Holdings and Ag Growth International, you can compare the effects of market volatilities on Textainer Group and Ag Growth 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 Textainer Group with a short position of Ag Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and Ag Growth.
Diversification Opportunities for Textainer Group and Ag Growth
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Textainer and AGGZF is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings and Ag Growth International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ag Growth International and Textainer Group 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 Textainer Group Holdings are associated (or correlated) with Ag Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ag Growth International has no effect on the direction of Textainer Group i.e., Textainer Group and Ag Growth go up and down completely randomly.
Pair Corralation between Textainer Group and Ag Growth
Assuming the 90 days horizon Textainer Group Holdings is expected to generate 1.26 times more return on investment than Ag Growth. However, Textainer Group is 1.26 times more volatile than Ag Growth International. It trades about 0.07 of its potential returns per unit of risk. Ag Growth International is currently generating about -0.01 per unit of risk. If you would invest 36.00 in Textainer Group Holdings on August 24, 2024 and sell it today you would earn a total of 40.00 from holding Textainer Group Holdings or generate 111.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 70.19% |
| Values | Daily Returns |
Textainer Group Holdings vs. Ag Growth International
Performance |
| Timeline |
| Textainer Group Holdings |
| Ag Growth International |
Textainer Group and Ag Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Textainer Group and Ag Growth
The main advantage of trading using opposite Textainer Group and Ag Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textainer Group position performs unexpectedly, Ag Growth 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 Ag Growth will offset losses from the drop in Ag Growth's long position.| Textainer Group vs. Lion Electric Corp | Textainer Group vs. Nikola Corp | Textainer Group vs. Buhler Industries | Textainer Group vs. Toyota Industries |
| Ag Growth vs. Element Solutions | Ag Growth vs. Orion Engineered Carbons | Ag Growth vs. Minerals Technologies | Ag Growth vs. Ingevity 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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