Correlation Between CAI International and Fortress Transp
Can any of the company-specific risk be diversified away by investing in both CAI International and Fortress Transp 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 CAI International and Fortress Transp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAI International and Fortress Transp Infra, you can compare the effects of market volatilities on CAI International 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 CAI International with a short position of Fortress Transp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAI International and Fortress Transp.
Diversification Opportunities for CAI International and Fortress Transp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CAI and Fortress is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAI International 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 CAI 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 CAI International 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 CAI International i.e., CAI International and Fortress Transp go up and down completely randomly.
Pair Corralation between CAI International and Fortress Transp
If you would invest 6,670 in Fortress Transp Infra on January 26, 2024 and sell it today you would earn a total of 675.00 from holding Fortress Transp Infra or generate 10.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
CAI International vs. Fortress Transp Infra
Performance |
Timeline |
CAI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortress Transp Infra |
CAI International and Fortress Transp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CAI International and Fortress Transp
The main advantage of trading using opposite CAI International and Fortress Transp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAI International 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.CAI International vs. Univest Pennsylvania | CAI International vs. Western Asset Investment | CAI International vs. Barings BDC | CAI International vs. AmTrust Financial Services |
Fortress Transp vs. Ryder System | Fortress Transp vs. The Aarons | Fortress Transp vs. Alta Equipment Group | Fortress Transp vs. GATX Corporation |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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