Correlation Between Textainer Group and Austin Engineering
Can any of the company-specific risk be diversified away by investing in both Textainer Group and Austin Engineering 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 Austin Engineering 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 Austin Engineering Limited, you can compare the effects of market volatilities on Textainer Group and Austin Engineering 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 Austin Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and Austin Engineering.
Diversification Opportunities for Textainer Group and Austin Engineering
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Textainer and Austin is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings and Austin Engineering Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austin Engineering 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 Austin Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austin Engineering has no effect on the direction of Textainer Group i.e., Textainer Group and Austin Engineering go up and down completely randomly.
Pair Corralation between Textainer Group and Austin Engineering
If you would invest 30.00 in Austin Engineering Limited on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Austin Engineering Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Textainer Group Holdings vs. Austin Engineering Limited
Performance |
| Timeline |
| Textainer Group Holdings |
| Austin Engineering |
Textainer Group and Austin Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Textainer Group and Austin Engineering
The main advantage of trading using opposite Textainer Group and Austin Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textainer Group position performs unexpectedly, Austin Engineering 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 Austin Engineering will offset losses from the drop in Austin Engineering's long position.| Textainer Group vs. Buhler Industries | Textainer Group vs. Austin Engineering Limited | Textainer Group vs. Ag Growth International | Textainer Group vs. Grow Solutions Holdings |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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