Correlation Between Textainer Group and DBM Global

Can any of the company-specific risk be diversified away by investing in both Textainer Group and DBM Global 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 DBM Global 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 DBM Global, you can compare the effects of market volatilities on Textainer Group and DBM Global 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 DBM Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Textainer Group and DBM Global.

Diversification Opportunities for Textainer Group and DBM Global

0.45

Correlation Coefficient

Textainer Group  DBM Global

Very weak diversification

The 3 months correlation between Textainer and DBM is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Textainer Group Holdings and DBM Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DBM Global 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 DBM Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DBM Global has no effect on the direction of Textainer Group i.e., Textainer Group and DBM Global go up and down completely randomly.

Pair Corralation between Textainer Group and DBM Global

Assuming the 90 days horizon Textainer Group is expected to generate 72.78 times less return on investment than DBM Global. But when comparing it to its historical volatility, Textainer Group Holdings is 9.14 times less risky than DBM Global. It trades about 0.02 of its potential returns per unit of risk. DBM Global is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,072  in DBM Global on September 14, 2025 and sell it today you would earn a total of  2,928  from holding DBM Global or generate 71.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Textainer Group Holdings  vs.  DBM Global

Textainer Group Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Textainer Group Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Textainer Group is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

DBM Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in DBM Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting primary indicators, DBM Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Textainer Group and DBM Global

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

The idea behind Textainer Group Holdings and DBM Global 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.