Correlation Between Textainer Group and American Premium
Can any of the company-specific risk be diversified away by investing in both Textainer Group and American Premium 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 American Premium 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 American Premium Water, you can compare the effects of market volatilities on Textainer Group and American Premium 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 American Premium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and American Premium.
Diversification Opportunities for Textainer Group and American Premium
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Textainer and American is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings and American Premium Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Premium Water 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 American Premium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Premium Water has no effect on the direction of Textainer Group i.e., Textainer Group and American Premium go up and down completely randomly.
Pair Corralation between Textainer Group and American Premium
Assuming the 90 days horizon Textainer Group is expected to generate 158.46 times less return on investment than American Premium. But when comparing it to its historical volatility, Textainer Group Holdings is 55.76 times less risky than American Premium. It trades about 0.07 of its potential returns per unit of risk. American Premium Water is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 0.03 in American Premium Water on August 30, 2024 and sell it today you would lose (0.02) from holding American Premium Water or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.33% |
| Values | Daily Returns |
Textainer Group Holdings vs. American Premium Water
Performance |
| Timeline |
| Textainer Group Holdings |
| American Premium Water |
Textainer Group and American Premium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Textainer Group and American Premium
The main advantage of trading using opposite Textainer Group and American Premium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textainer Group position performs unexpectedly, American Premium 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 American Premium will offset losses from the drop in American Premium's long position.| Textainer Group vs. Buhler Industries | Textainer Group vs. Ag Growth International | Textainer Group vs. Grow Solutions Holdings | Textainer Group vs. American Premium Water |
| American Premium vs. SPENN Technology AS | American Premium vs. OFX Group Ltd | American Premium vs. Cypherpunk Holdings | American Premium vs. Cathedra Bitcoin |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |