Correlation Between Textainer Group and CNHI Old
Can any of the company-specific risk be diversified away by investing in both Textainer Group and CNHI Old 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 Textainer Group and CNHI Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Textainer Group Holdings and CNHI Old, you can compare the effects of market volatilities on Textainer Group and CNHI Old 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 Textainer Group with a short position of CNHI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and CNHI Old.
Diversification Opportunities for Textainer Group and CNHI Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Textainer and CNHI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings and CNHI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNHI Old and Textainer Group 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 Textainer Group Holdings are associated (or correlated) with CNHI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNHI Old has no effect on the direction of Textainer Group i.e., Textainer Group and CNHI Old go up and down completely randomly.
Pair Corralation between Textainer Group and CNHI Old
If you would invest (100.00) in CNHI Old on December 5, 2024 and sell it today you would earn a total of 100.00 from holding CNHI Old or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Textainer Group Holdings vs. CNHI Old
Performance |
Timeline |
Textainer Group Holdings |
CNHI Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Textainer Group and CNHI Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Textainer Group and CNHI Old
The main advantage of trading using opposite Textainer Group and CNHI Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Textainer Group position performs unexpectedly, CNHI Old 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 CNHI Old will offset losses from the drop in CNHI Old's long position.Textainer Group vs. Buhler Industries | Textainer Group vs. Austin Engineering Limited | Textainer Group vs. Ag Growth International | Textainer Group vs. Grow Solutions 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |