Correlation Between United Rentals and Henry Schein
Can any of the company-specific risk be diversified away by investing in both United Rentals and Henry Schein 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 United Rentals and Henry Schein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Henry Schein, you can compare the effects of market volatilities on United Rentals and Henry Schein 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 United Rentals with a short position of Henry Schein. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Henry Schein.
Diversification Opportunities for United Rentals and Henry Schein
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and Henry is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Henry Schein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Schein and United Rentals 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 United Rentals are associated (or correlated) with Henry Schein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Schein has no effect on the direction of United Rentals i.e., United Rentals and Henry Schein go up and down completely randomly.
Pair Corralation between United Rentals and Henry Schein
Assuming the 90 days horizon United Rentals is expected to under-perform the Henry Schein. In addition to that, United Rentals is 1.74 times more volatile than Henry Schein. It trades about -0.28 of its total potential returns per unit of risk. Henry Schein is currently generating about -0.34 per unit of volatility. If you would invest 7,712 in Henry Schein on December 5, 2024 and sell it today you would lose (796.00) from holding Henry Schein or give up 10.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
United Rentals vs. Henry Schein
Performance |
Timeline |
United Rentals |
Henry Schein |
United Rentals and Henry Schein Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and Henry Schein
The main advantage of trading using opposite United Rentals and Henry Schein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Henry Schein 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 Henry Schein will offset losses from the drop in Henry Schein's long position.United Rentals vs. Air Lease | United Rentals vs. NetSol Technologies | United Rentals vs. Uber Technologies | United Rentals vs. ACCSYS TECHPLC EO |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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