Correlation Between Under Armour and U Haul

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

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

Diversification Opportunities for Under Armour and U Haul

0.32

Correlation Coefficient

Under Armour  U Haul

Weak diversification

The 3 months correlation between Under and UHAL is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Under Armour C 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 Under Armour 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 Under Armour C 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 Under Armour i.e., Under Armour and U Haul go up and down completely randomly.

Pair Corralation between Under Armour and U Haul

Allowing for the 90-day total investment horizon Under Armour C is expected to under-perform the U Haul. In addition to that, Under Armour is 1.26 times more volatile than U Haul Holding. It trades about -0.15 of its total potential returns per unit of risk. U Haul Holding is currently generating about -0.04 per unit of volatility. If you would invest  6,746  in U Haul Holding on December 19, 2024 and sell it today you would lose (323.00) from holding U Haul Holding or give up 4.79% of portfolio value over 90 days.

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

Under Armour C  vs.  U Haul Holding

Under Armour C

Risk-Adjusted Performance

Very Weak

Over the last 90 days Under Armour C has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

U Haul Holding

Risk-Adjusted Performance

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 quite persistent basic indicators, U Haul is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Under Armour and U Haul

The main advantage of trading using opposite Under Armour and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Under Armour 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 Under Armour C 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.