Correlation Between Autohellas and U Haul

Can any of the company-specific risk be diversified away by investing in both Autohellas and U Haul 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 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 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Autohellas and U Haul.

Diversification Opportunities for Autohellas and U Haul

0.0

Correlation Coefficient

Autohellas  U Haul

Pay attention - limited upside

The 3 months correlation between Autohellas and UHAL-B 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. 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 go up and down completely randomly.

Pair Corralation between Autohellas and U Haul

If you would invest  5,966  in U Haul Holding on September 29, 2024 and sell it today you would earn a total of  450.00  from holding U Haul Holding or generate 7.54% 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 latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Autohellas and U Haul

The main advantage of trading using opposite Autohellas and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Autohellas position performs unexpectedly, U Haul 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 will offset losses from the drop in U Haul'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.