Correlation Between Sapiens International and U Haul

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

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

Diversification Opportunities for Sapiens International and U Haul

0.59

Correlation Coefficient

Sapiens International  U Haul

Very weak diversification

The 3 months correlation between Sapiens and UHAL is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sapiens International 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 Sapiens International 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 Sapiens International 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 Sapiens International i.e., Sapiens International and U Haul go up and down completely randomly.

Pair Corralation between Sapiens International and U Haul

Given the investment horizon of 90 days Sapiens International is expected to under-perform the U Haul. In addition to that, Sapiens International is 1.74 times more volatile than U Haul Holding. It trades about -0.03 of its total potential returns per unit of risk. U Haul Holding is currently generating about 0.07 per unit of volatility. If you would invest  6,218  in U Haul Holding on September 24, 2024 and sell it today you would earn a total of  870.00  from holding U Haul Holding or generate 13.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.21%
Values	Daily Returns

Sapiens International  vs.  U Haul Holding

Sapiens International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sapiens International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Sapiens International and U Haul

The main advantage of trading using opposite Sapiens International and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sapiens International 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 Sapiens International 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.