Correlation Between U Haul and 65339KCA6

Can any of the company-specific risk be diversified away by investing in both U Haul and 65339KCA6 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 65339KCA6 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 NEE 3 15 JAN 52, you can compare the effects of market volatilities on U Haul and 65339KCA6 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 65339KCA6. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and 65339KCA6.

Diversification Opportunities for U Haul and 65339KCA6

0.53

Correlation Coefficient

U Haul  65339KCA6

Very weak diversification

The 3 months correlation between UHAL and 65339KCA6 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and NEE 3 15 JAN 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 65339KCA6 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 65339KCA6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 65339KCA6 has no effect on the direction of U Haul i.e., U Haul and 65339KCA6 go up and down completely randomly.

Pair Corralation between U Haul and 65339KCA6

Given the investment horizon of 90 days U Haul Holding is expected to generate 1.39 times more return on investment than 65339KCA6. However, U Haul is 1.39 times more volatile than NEE 3 15 JAN 52. It trades about 0.0 of its potential returns per unit of risk. NEE 3 15 JAN 52 is currently generating about -0.07 per unit of risk. If you would invest  7,348  in U Haul Holding on September 17, 2024 and sell it today you would lose (22.00) from holding U Haul Holding or give up 0.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	73.44%
Values	Daily Returns

U Haul Holding  vs.  NEE 3 15 JAN 52

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 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.

65339KCA6

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NEE 3 15 JAN 52 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 65339KCA6 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with U Haul and 65339KCA6

The main advantage of trading using opposite U Haul and 65339KCA6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, 65339KCA6 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 65339KCA6 will offset losses from the drop in 65339KCA6's long position.

The idea behind U Haul Holding and NEE 3 15 JAN 52 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.