Correlation Between Textainer Group and Nikola Corp
Can any of the company-specific risk be diversified away by investing in both Textainer Group and Nikola Corp 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 Nikola Corp 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 Nikola Corp, you can compare the effects of market volatilities on Textainer Group and Nikola Corp 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 Nikola Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and Nikola Corp.
Diversification Opportunities for Textainer Group and Nikola Corp
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Textainer and Nikola is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings and Nikola Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nikola Corp 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 Nikola Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nikola Corp has no effect on the direction of Textainer Group i.e., Textainer Group and Nikola Corp go up and down completely randomly.
Pair Corralation between Textainer Group and Nikola Corp
Assuming the 90 days horizon Textainer Group Holdings is expected to generate 0.47 times more return on investment than Nikola Corp. However, Textainer Group Holdings is 2.14 times less risky than Nikola Corp. It trades about 0.06 of its potential returns per unit of risk. Nikola Corp is currently generating about -0.06 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Textainer Group Holdings vs. Nikola Corp
Performance |
| Timeline |
| Textainer Group Holdings |
| Nikola Corp |
Textainer Group and Nikola Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Textainer Group and Nikola Corp
The main advantage of trading using opposite Textainer Group and Nikola Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textainer Group position performs unexpectedly, Nikola Corp 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 Nikola Corp will offset losses from the drop in Nikola Corp's long position.| Textainer Group vs. Lion Electric Corp | Textainer Group vs. Nikola Corp | Textainer Group vs. Buhler Industries | Textainer Group vs. Toyota Industries |
| Nikola Corp vs. Lion Electric Corp | Nikola Corp vs. Xos Inc | Nikola Corp vs. Hydrofarm Holdings Group | Nikola Corp vs. Caterpillar |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |