Correlation Between CRRC and United Rentals

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

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

Diversification Opportunities for CRRC and United Rentals

0.0

Correlation Coefficient

CRRC  United Rentals

Pay attention - limited upside

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

Pair Corralation between CRRC and United Rentals

If you would invest  61.00  in CRRC Limited on December 19, 2024 and sell it today you would earn a total of  0.00  from holding CRRC Limited or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

CRRC Limited  vs.  United Rentals

CRRC Limited

Risk-Adjusted Performance

Very Weak

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

United Rentals

Risk-Adjusted Performance

Very Weak

Over the last 90 days United Rentals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CRRC and United Rentals

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

The idea behind CRRC Limited and United Rentals 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.