Correlation Between Autohellas and U-Haul Holding

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

By analyzing existing cross correlation between Autohellas SA and U Haul Holding, you can compare the effects of market volatilities on Autohellas and U-Haul Holding 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 Autohellas with a short position of U-Haul Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohellas and U-Haul Holding.

Diversification Opportunities for Autohellas and U-Haul Holding

0.0

Correlation Coefficient

Autohellas  U-Haul Holding

Pay attention - limited upside

The 3 months correlation between Autohellas and U-Haul is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Autohellas SA and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding and Autohellas 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 Autohellas SA are associated (or correlated) with U-Haul Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Autohellas i.e., Autohellas and U-Haul Holding go up and down completely randomly.

Pair Corralation between Autohellas and U-Haul Holding

If you would invest  6,484  in U Haul Holding on October 23, 2024 and sell it today you would earn a total of  12.00  from holding U Haul Holding or generate 0.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Autohellas SA  vs.  U Haul Holding

Autohellas SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Autohellas SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Autohellas is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

U Haul Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, U-Haul Holding is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Autohellas and U-Haul Holding

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

The idea behind Autohellas SA and U Haul Holding 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.

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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.