Correlation Between Triton International and Multi Ways
Can any of the company-specific risk be diversified away by investing in both Triton International and Multi Ways 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 Triton International and Multi Ways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triton International Limited and Multi Ways Holdings, you can compare the effects of market volatilities on Triton International and Multi Ways 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 Triton International with a short position of Multi Ways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triton International and Multi Ways.
Diversification Opportunities for Triton International and Multi Ways
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triton and Multi is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Triton International Limited and Multi Ways Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Ways Holdings and Triton International 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 Triton International Limited are associated (or correlated) with Multi Ways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Ways Holdings has no effect on the direction of Triton International i.e., Triton International and Multi Ways go up and down completely randomly.
Pair Corralation between Triton International and Multi Ways
Assuming the 90 days trading horizon Triton International Limited is expected to generate 0.08 times more return on investment than Multi Ways. However, Triton International Limited is 13.32 times less risky than Multi Ways. It trades about 0.31 of its potential returns per unit of risk. Multi Ways Holdings is currently generating about 0.01 per unit of risk. If you would invest 2,481 in Triton International Limited on September 18, 2024 and sell it today you would earn a total of 39.00 from holding Triton International Limited or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triton International Limited vs. Multi Ways Holdings
Performance |
| Timeline |
| Triton International |
| Multi Ways Holdings |
Triton International and Multi Ways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triton International and Multi Ways
The main advantage of trading using opposite Triton International and Multi Ways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triton International position performs unexpectedly, Multi Ways 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 Multi Ways will offset losses from the drop in Multi Ways' long position.| Triton International vs. Triton International Limited | Triton International vs. Triton International Limited | Triton International vs. Triton International Limited | Triton International vs. Costamare |
| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |