Correlation Between Ameresco and Trinity Industries

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

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

Diversification Opportunities for Ameresco and Trinity Industries

0.36

Correlation Coefficient

Ameresco  Trinity Industries

Weak diversification

The 3 months correlation between Ameresco and Trinity is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ameresco and Trinity Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trinity Industries and Ameresco 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 Ameresco are associated (or correlated) with Trinity Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trinity Industries has no effect on the direction of Ameresco i.e., Ameresco and Trinity Industries go up and down completely randomly.

Pair Corralation between Ameresco and Trinity Industries

Given the investment horizon of 90 days Ameresco is expected to generate 4.42 times more return on investment than Trinity Industries. However, Ameresco is 4.42 times more volatile than Trinity Industries. It trades about 0.21 of its potential returns per unit of risk. Trinity Industries is currently generating about 0.11 per unit of risk. If you would invest  1,670  in Ameresco on August 4, 2025 and sell it today you would earn a total of  2,282  from holding Ameresco or generate 136.65% return on investment over 90 days.

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

Ameresco  vs.  Trinity Industries

Ameresco

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ameresco are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Ameresco exhibited solid returns over the last few months and may actually be approaching a breakup point.

Trinity Industries

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Trinity Industries are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Trinity Industries may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Ameresco and Trinity Industries

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

The idea behind Ameresco and Trinity Industries 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.