Correlation Between MASTEC and Fortress Transp
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By analyzing existing cross correlation between MASTEC INC 45 and Fortress Transp Infra, you can compare the effects of market volatilities on MASTEC and Fortress Transp 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 MASTEC with a short position of Fortress Transp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MASTEC and Fortress Transp.
Diversification Opportunities for MASTEC and Fortress Transp
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MASTEC and Fortress is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MASTEC INC 45 and Fortress Transp Infra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortress Transp Infra and MASTEC 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 MASTEC INC 45 are associated (or correlated) with Fortress Transp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortress Transp Infra has no effect on the direction of MASTEC i.e., MASTEC and Fortress Transp go up and down completely randomly.
Pair Corralation between MASTEC and Fortress Transp
Assuming the 90 days trading horizon MASTEC INC 45 is expected to under-perform the Fortress Transp. But the bond apears to be less risky and, when comparing its historical volatility, MASTEC INC 45 is 3.86 times less risky than Fortress Transp. The bond trades about -0.13 of its potential returns per unit of risk. The Fortress Transp Infra is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 11,771 in Fortress Transp Infra on September 2, 2024 and sell it today you would earn a total of 5,111 from holding Fortress Transp Infra or generate 43.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.5% |
| Values | Daily Returns |
MASTEC INC 45 vs. Fortress Transp Infra
Performance |
| Timeline |
| MASTEC INC 45 |
| Fortress Transp Infra |
MASTEC and Fortress Transp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MASTEC and Fortress Transp
The main advantage of trading using opposite MASTEC and Fortress Transp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MASTEC position performs unexpectedly, Fortress Transp 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 Fortress Transp will offset losses from the drop in Fortress Transp's long position.The idea behind MASTEC INC 45 and Fortress Transp Infra pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Fortress Transp vs. McGrath RentCorp | Fortress Transp vs. Custom Truck One | Fortress Transp vs. Herc Holdings | Fortress Transp vs. Alta Equipment 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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