Correlation Between U Haul and Bill

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

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

Diversification Opportunities for U Haul and Bill

-0.49

Correlation Coefficient

U Haul  Bill

Very good diversification

The 3 months correlation between UHAL and Bill is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings and U Haul 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 U Haul Holding are associated (or correlated) with Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of U Haul i.e., U Haul and Bill go up and down completely randomly.

Pair Corralation between U Haul and Bill

Given the investment horizon of 90 days U Haul Holding is expected to generate 0.77 times more return on investment than Bill. However, U Haul Holding is 1.29 times less risky than Bill. It trades about -0.19 of its potential returns per unit of risk. Bill Com Holdings is currently generating about -0.16 per unit of risk. If you would invest  7,408  in U Haul Holding on October 12, 2024 and sell it today you would lose (571.00) from holding U Haul Holding or give up 7.71% of portfolio value over 90 days.

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

U Haul Holding  vs.  Bill Com Holdings

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.

Bill Com Holdings

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bill Com Holdings are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, Bill disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with U Haul and Bill

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

The idea behind U Haul Holding and Bill Com Holdings 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.