Correlation Between U Haul and Dana

Can any of the company-specific risk be diversified away by investing in both U Haul and Dana 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 Dana 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 Dana Inc, you can compare the effects of market volatilities on U Haul and Dana 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 Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Dana.

Diversification Opportunities for U Haul and Dana

0.31

Correlation Coefficient

U Haul  Dana

Weak diversification

The 3 months correlation between UHAL and Dana is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc 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 Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of U Haul i.e., U Haul and Dana go up and down completely randomly.

Pair Corralation between U Haul and Dana

Given the investment horizon of 90 days U Haul Holding is expected to under-perform the Dana. But the stock apears to be less risky and, when comparing its historical volatility, U Haul Holding is 2.36 times less risky than Dana. The stock trades about -0.03 of its potential returns per unit of risk. The Dana Inc is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest  856.00  in Dana Inc on September 12, 2024 and sell it today you would earn a total of  439.00  from holding Dana Inc or generate 51.29% return on investment over 90 days.

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

U Haul Holding  vs.  Dana Inc

U Haul Holding

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in U Haul Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. 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.

Dana Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dana Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Dana displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with U Haul and Dana

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

The idea behind U Haul Holding and Dana Inc 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.