Correlation Between Alta Equipment and StealthGas
Can any of the company-specific risk be diversified away by investing in both Alta Equipment and StealthGas 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 Alta Equipment and StealthGas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alta Equipment Group and StealthGas, you can compare the effects of market volatilities on Alta Equipment and StealthGas 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 Alta Equipment with a short position of StealthGas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alta Equipment and StealthGas.
Diversification Opportunities for Alta Equipment and StealthGas
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Alta and StealthGas is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Alta Equipment Group and StealthGas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StealthGas and Alta Equipment 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 Alta Equipment Group are associated (or correlated) with StealthGas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StealthGas has no effect on the direction of Alta Equipment i.e., Alta Equipment and StealthGas go up and down completely randomly.
Pair Corralation between Alta Equipment and StealthGas
Given the investment horizon of 90 days Alta Equipment Group is expected to under-perform the StealthGas. In addition to that, Alta Equipment is 2.36 times more volatile than StealthGas. It trades about -0.26 of its total potential returns per unit of risk. StealthGas is currently generating about -0.12 per unit of volatility. If you would invest 766.00 in StealthGas on August 27, 2025 and sell it today you would lose (84.00) from holding StealthGas or give up 10.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alta Equipment Group vs. StealthGas
Performance |
| Timeline |
| Alta Equipment Group |
| StealthGas |
Alta Equipment and StealthGas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alta Equipment and StealthGas
The main advantage of trading using opposite Alta Equipment and StealthGas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alta Equipment position performs unexpectedly, StealthGas 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 StealthGas will offset losses from the drop in StealthGas' long position.| Alta Equipment vs. nDatalyze Corp | Alta Equipment vs. Information Planning LTD | Alta Equipment vs. General Datacomm Industries | Alta Equipment vs. Ion Beam Applications |
| StealthGas vs. Kimball Electronics | StealthGas vs. EvoAir Holdings | StealthGas vs. Surf Air Mobility | StealthGas vs. Fair Isaac |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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