Correlation Between CAI International and GATX
Can any of the company-specific risk be diversified away by investing in both CAI International and GATX 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 GATX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAI International and GATX Corporation, you can compare the effects of market volatilities on CAI International and GATX 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 GATX. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAI International and GATX.
Diversification Opportunities for CAI International and GATX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CAI and GATX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CAI International and GATX Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GATX 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 GATX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GATX has no effect on the direction of CAI International i.e., CAI International and GATX go up and down completely randomly.
Pair Corralation between CAI International and GATX
If you would invest 12,886 in GATX Corporation on February 11, 2024 and sell it today you would earn a total of 384.00 from holding GATX Corporation or generate 2.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
CAI International vs. GATX Corp.
Performance |
Timeline |
CAI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GATX |
CAI International and GATX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CAI International and GATX
The main advantage of trading using opposite CAI International and GATX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAI International position performs unexpectedly, GATX 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 GATX will offset losses from the drop in GATX's long position.CAI International vs. Weibo Corp | CAI International vs. Keurig Dr Pepper | CAI International vs. KVH Industries | CAI International vs. Playtika Holding Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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