Correlation Between U Haul and Super League

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

Diversification Opportunities for U Haul and Super League

0.16

Correlation Coefficient

U Haul  Super League

Average diversification

The 3 months correlation between UHAL and Super is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Super League Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super League Enterprise 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 Super League. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super League Enterprise has no effect on the direction of U Haul i.e., U Haul and Super League go up and down completely randomly.

Pair Corralation between U Haul and Super League

Given the investment horizon of 90 days U Haul Holding is expected to generate 0.22 times more return on investment than Super League. However, U Haul Holding is 4.55 times less risky than Super League. It trades about 0.03 of its potential returns per unit of risk. Super League Enterprise is currently generating about -0.02 per unit of risk. If you would invest  5,957  in U Haul Holding on September 24, 2024 and sell it today you would earn a total of  1,131  from holding U Haul Holding or generate 18.99% return on investment over 90 days.

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

U Haul Holding  vs.  Super League Enterprise

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.

Super League Enterprise

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Super League Enterprise are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile essential indicators, Super League may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with U Haul and Super League

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

The idea behind U Haul Holding and Super League Enterprise 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.