Correlation Between Fortress Transportation and Custom Truck
Can any of the company-specific risk be diversified away by investing in both Fortress Transportation and Custom Truck 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 Fortress Transportation and Custom Truck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Transportation and and Custom Truck One, you can compare the effects of market volatilities on Fortress Transportation and Custom Truck 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 Fortress Transportation with a short position of Custom Truck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Transportation and Custom Truck.
Diversification Opportunities for Fortress Transportation and Custom Truck
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fortress and Custom is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Transportation and and Custom Truck One in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Custom Truck One and Fortress Transportation 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 Fortress Transportation and are associated (or correlated) with Custom Truck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Custom Truck One has no effect on the direction of Fortress Transportation i.e., Fortress Transportation and Custom Truck go up and down completely randomly.
Pair Corralation between Fortress Transportation and Custom Truck
Assuming the 90 days horizon Fortress Transportation is expected to generate 14.58 times less return on investment than Custom Truck. But when comparing it to its historical volatility, Fortress Transportation and is 5.66 times less risky than Custom Truck. It trades about 0.08 of its potential returns per unit of risk. Custom Truck One is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Custom Truck One on May 28, 2025 and sell it today you would earn a total of 167.00 from holding Custom Truck One or generate 38.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fortress Transportation and vs. Custom Truck One
Performance |
| Timeline |
| Fortress Transportation |
| Custom Truck One |
Fortress Transportation and Custom Truck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Transportation and Custom Truck
The main advantage of trading using opposite Fortress Transportation and Custom Truck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Transportation position performs unexpectedly, Custom Truck 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 Custom Truck will offset losses from the drop in Custom Truck's long position.| Fortress Transportation vs. Alta Equipment Group | Fortress Transportation vs. FTAI Aviation Ltd | Fortress Transportation vs. Triton International Limited | Fortress Transportation vs. SiriusPoint |
| Custom Truck vs. Alta Equipment Group | Custom Truck vs. McGrath RentCorp | Custom Truck vs. GATX Corporation | Custom Truck vs. Mega Matrix 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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