Correlation Between Triton International and Custom Truck
Can any of the company-specific risk be diversified away by investing in both Triton International and Custom Truck 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 Custom Truck 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 Custom Truck One, you can compare the effects of market volatilities on Triton International and Custom Truck 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 Custom Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triton International and Custom Truck.
Diversification Opportunities for Triton International and Custom Truck
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triton and Custom is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Triton International Limited and Custom Truck One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Custom Truck One 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 Custom Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Custom Truck One has no effect on the direction of Triton International i.e., Triton International and Custom Truck go up and down completely randomly.
Pair Corralation between Triton International and Custom Truck
Assuming the 90 days trading horizon Triton International Limited is expected to generate 0.31 times more return on investment than Custom Truck. However, Triton International Limited is 3.23 times less risky than Custom Truck. It trades about 0.06 of its potential returns per unit of risk. Custom Truck One is currently generating about 0.0 per unit of risk. If you would invest 1,971 in Triton International Limited on August 27, 2024 and sell it today you would earn a total of 243.00 from holding Triton International Limited or generate 12.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triton International Limited vs. Custom Truck One
Performance |
| Timeline |
| Triton International |
| Custom Truck One |
Triton International and Custom Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triton International and Custom Truck
The main advantage of trading using opposite Triton International and Custom Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triton International position performs unexpectedly, Custom Truck 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 Custom Truck will offset losses from the drop in Custom Truck's long position.| Triton International vs. Ryder System | Triton International vs. Air Lease | Triton International vs. Vestis | Triton International vs. Willis Lease Finance |
| Custom Truck vs. PROG Holdings | Custom Truck vs. McGrath RentCorp | Custom Truck vs. Mega Matrix Corp | Custom Truck 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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