Correlation Between Textainer Group and Hino Motors
Can any of the company-specific risk be diversified away by investing in both Textainer Group and Hino Motors 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 Hino Motors 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 Hino Motors Ltd, you can compare the effects of market volatilities on Textainer Group and Hino Motors 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 Hino Motors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and Hino Motors.
Diversification Opportunities for Textainer Group and Hino Motors
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Textainer and Hino is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings and Hino Motors Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hino Motors 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 Hino Motors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hino Motors has no effect on the direction of Textainer Group i.e., Textainer Group and Hino Motors go up and down completely randomly.
Pair Corralation between Textainer Group and Hino Motors
Assuming the 90 days horizon Textainer Group is expected to generate 41.76 times less return on investment than Hino Motors. In addition to that, Textainer Group is 1.19 times more volatile than Hino Motors Ltd. It trades about 0.0 of its total potential returns per unit of risk. Hino Motors Ltd is currently generating about 0.22 per unit of volatility. If you would invest 2,770 in Hino Motors Ltd on January 14, 2025 and sell it today you would earn a total of 464.00 from holding Hino Motors Ltd or generate 16.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Textainer Group Holdings vs. Hino Motors Ltd
Performance |
| Timeline |
| Textainer Group Holdings |
| Hino Motors |
Textainer Group and Hino Motors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Textainer Group and Hino Motors
The main advantage of trading using opposite Textainer Group and Hino Motors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textainer Group position performs unexpectedly, Hino Motors 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 Hino Motors will offset losses from the drop in Hino Motors' long position.| Textainer Group vs. Austin Engineering Limited | Textainer Group vs. Ag Growth International | Textainer Group vs. Grow Solutions Holdings | Textainer Group vs. AmeraMex International |
| Hino Motors vs. Daimler Truck Holding | Hino Motors vs. Volvo AB ADR | Hino Motors vs. Columbus McKinnon | Hino Motors vs. Hyster Yale Materials Handling |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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