Correlation Between GATX and CAI International
Can any of the company-specific risk be diversified away by investing in both GATX and CAI 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 GATX and CAI International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GATX Corporation and CAI International, you can compare the effects of market volatilities on GATX and CAI 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 GATX with a short position of CAI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GATX and CAI International.
Diversification Opportunities for GATX and CAI International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GATX and CAI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GATX Corp. and CAI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAI International and GATX 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 GATX Corporation are associated (or correlated) with CAI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAI International has no effect on the direction of GATX i.e., GATX and CAI International go up and down completely randomly.
Pair Corralation between GATX and CAI International
If you would invest 10,612 in GATX Corporation on January 25, 2024 and sell it today you would earn a total of 2,000 from holding GATX Corporation or generate 18.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
GATX Corp. vs. CAI International
Performance |
Timeline |
GATX |
CAI International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GATX and CAI International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GATX and CAI International
The main advantage of trading using opposite GATX and CAI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GATX position performs unexpectedly, CAI 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 CAI International will offset losses from the drop in CAI International's long position.GATX vs. Custom Truck One | GATX vs. HE Equipment Services | GATX vs. Alta Equipment Group | GATX vs. The Aarons |
CAI International vs. Univest Pennsylvania | CAI International vs. Western Asset Investment | CAI International vs. Barings BDC | CAI International vs. AmTrust Financial Services |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
CEOs Directory Screen CEOs from public companies around the world |