Correlation Between Triplepoint Venture and McGrath RentCorp
Can any of the company-specific risk be diversified away by investing in both Triplepoint Venture and McGrath RentCorp 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 Triplepoint Venture and McGrath RentCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triplepoint Venture Growth and McGrath RentCorp, you can compare the effects of market volatilities on Triplepoint Venture and McGrath RentCorp 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 Triplepoint Venture with a short position of McGrath RentCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triplepoint Venture and McGrath RentCorp.
Diversification Opportunities for Triplepoint Venture and McGrath RentCorp
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Triplepoint and McGrath is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Triplepoint Venture Growth and McGrath RentCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McGrath RentCorp and Triplepoint Venture 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 Triplepoint Venture Growth are associated (or correlated) with McGrath RentCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McGrath RentCorp has no effect on the direction of Triplepoint Venture i.e., Triplepoint Venture and McGrath RentCorp go up and down completely randomly.
Pair Corralation between Triplepoint Venture and McGrath RentCorp
Given the investment horizon of 90 days Triplepoint Venture is expected to generate 1.98 times less return on investment than McGrath RentCorp. But when comparing it to its historical volatility, Triplepoint Venture Growth is 1.0 times less risky than McGrath RentCorp. It trades about 0.22 of its potential returns per unit of risk. McGrath RentCorp is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 11,076 in McGrath RentCorp on November 4, 2024 and sell it today you would earn a total of 1,191 from holding McGrath RentCorp or generate 10.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triplepoint Venture Growth vs. McGrath RentCorp
Performance |
| Timeline |
| Triplepoint Venture |
| McGrath RentCorp |
Triplepoint Venture and McGrath RentCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triplepoint Venture and McGrath RentCorp
The main advantage of trading using opposite Triplepoint Venture and McGrath RentCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triplepoint Venture position performs unexpectedly, McGrath RentCorp 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 McGrath RentCorp will offset losses from the drop in McGrath RentCorp's long position.| Triplepoint Venture vs. BlackRock TCP Capital | Triplepoint Venture vs. Sixth Street Specialty | Triplepoint Venture vs. Golub Capital BDC | Triplepoint Venture vs. New Mountain Finance |
| McGrath RentCorp vs. Alta Equipment Group | McGrath RentCorp vs. GATX Corporation | McGrath RentCorp vs. Mega Matrix Corp | McGrath RentCorp vs. FTAI Aviation Ltd |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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