Correlation Between TRUIST and Alta Equipment
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By analyzing existing cross correlation between TRUIST BANK and Alta Equipment Group, you can compare the effects of market volatilities on TRUIST and Alta Equipment 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 TRUIST with a short position of Alta Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRUIST and Alta Equipment.
Diversification Opportunities for TRUIST and Alta Equipment
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between TRUIST and Alta is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding TRUIST BANK and Alta Equipment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Equipment Group and TRUIST 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 TRUIST BANK are associated (or correlated) with Alta Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Equipment Group has no effect on the direction of TRUIST i.e., TRUIST and Alta Equipment go up and down completely randomly.
Pair Corralation between TRUIST and Alta Equipment
If you would invest 645.00 in Alta Equipment Group on September 1, 2024 and sell it today you would earn a total of 146.00 from holding Alta Equipment Group or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
TRUIST BANK vs. Alta Equipment Group
Performance |
| Timeline |
| TRUIST BANK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Alta Equipment Group |
TRUIST and Alta Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRUIST and Alta Equipment
The main advantage of trading using opposite TRUIST and Alta Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRUIST position performs unexpectedly, Alta Equipment 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 Alta Equipment will offset losses from the drop in Alta Equipment's long position.| TRUIST vs. Aldel Financial II | TRUIST vs. Dolphin Entertainment | TRUIST vs. Sabra Healthcare REIT | TRUIST vs. Marchex |
| Alta Equipment vs. McGrath RentCorp | Alta Equipment vs. Herc Holdings | Alta Equipment vs. GATX Corporation | Alta Equipment vs. PROG Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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