Correlation Between Triton International and Hubbell

Can any of the company-specific risk be diversified away by investing in both Triton International and Hubbell 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 Triton International and Hubbell into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Triton International Group and Hubbell, you can compare the effects of market volatilities on Triton International and Hubbell 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 Triton International with a short position of Hubbell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triton International and Hubbell.

Diversification Opportunities for Triton International and Hubbell

-0.3

Correlation Coefficient

Triton International  Hubbell

Very good diversification

The 3 months correlation between Triton and Hubbell is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Triton International Group and Hubbell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubbell and Triton 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 Triton International Group are associated (or correlated) with Hubbell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubbell has no effect on the direction of Triton International i.e., Triton International and Hubbell go up and down completely randomly.

Pair Corralation between Triton International and Hubbell

If you would invest  7,955  in Triton International Group on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Triton International Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Triton International Group  vs.  Hubbell

Triton International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Triton International Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Triton International is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Hubbell

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hubbell are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain fundamental drivers, Hubbell sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Triton International and Hubbell

The main advantage of trading using opposite Triton International and Hubbell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triton International position performs unexpectedly, Hubbell 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 Hubbell will offset losses from the drop in Hubbell's long position.

The idea behind Triton International Group and Hubbell 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.