Correlation Between U Haul and Under Armour

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

Diversification Opportunities for U Haul and Under Armour

0.18

Correlation Coefficient

U Haul  Under Armour

Average diversification

The 3 months correlation between UHAL and Under is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of U Haul i.e., U Haul and Under Armour go up and down completely randomly.

Pair Corralation between U Haul and Under Armour

Given the investment horizon of 90 days U Haul Holding is expected to generate 0.65 times more return on investment than Under Armour. However, U Haul Holding is 1.53 times less risky than Under Armour. It trades about 0.01 of its potential returns per unit of risk. Under Armour C is currently generating about -0.01 per unit of risk. If you would invest  6,628  in U Haul Holding on October 7, 2024 and sell it today you would earn a total of  323.00  from holding U Haul Holding or generate 4.87% 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.  Under Armour C

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.

Under Armour C

Risk-Adjusted Performance

0 of 100

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 somewhat strong basic indicators, Under Armour is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with U Haul and Under Armour

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

The idea behind U Haul Holding and Under Armour C 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.