Correlation Between U Haul and Triton International
Can any of the company-specific risk be diversified away by investing in both U Haul and Triton International 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 U Haul and Triton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and Triton International Limited, you can compare the effects of market volatilities on U Haul and Triton International 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 U Haul with a short position of Triton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Triton International.
Diversification Opportunities for U Haul and Triton International
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UHAL and Triton is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Triton International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triton International and U Haul 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 U Haul Holding are associated (or correlated) with Triton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triton International has no effect on the direction of U Haul i.e., U Haul and Triton International go up and down completely randomly.
Pair Corralation between U Haul and Triton International
Given the investment horizon of 90 days U Haul is expected to generate 1.45 times less return on investment than Triton International. In addition to that, U Haul is 1.4 times more volatile than Triton International Limited. It trades about 0.03 of its total potential returns per unit of risk. Triton International Limited is currently generating about 0.06 per unit of volatility. If you would invest 1,694 in Triton International Limited on August 29, 2024 and sell it today you would earn a total of 512.00 from holding Triton International Limited or generate 30.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. Triton International Limited
Performance |
| Timeline |
| U Haul Holding |
| Triton International |
U Haul and Triton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Triton International
The main advantage of trading using opposite U Haul and Triton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, Triton International 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 Triton International will offset losses from the drop in Triton International's long position.| U Haul vs. AerCap Holdings NV | U Haul vs. Alta Equipment Group | U Haul vs. PROG Holdings | U Haul vs. GATX Corporation |
| Triton International vs. Ryder System | Triton International vs. Air Lease | Triton International vs. Vestis | Triton International vs. Willis Lease Finance |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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