Correlation Between United Rentals and Banc Of
Can any of the company-specific risk be diversified away by investing in both United Rentals and Banc Of 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 Banc Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Banc of California, you can compare the effects of market volatilities on United Rentals and Banc Of 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 Banc Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Banc Of.
Diversification Opportunities for United Rentals and Banc Of
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between United and Banc is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Banc of California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banc of California 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 Banc Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banc of California has no effect on the direction of United Rentals i.e., United Rentals and Banc Of go up and down completely randomly.
Pair Corralation between United Rentals and Banc Of
Considering the 90-day investment horizon United Rentals is expected to generate 3.32 times more return on investment than Banc Of. However, United Rentals is 3.32 times more volatile than Banc of California. It trades about 0.05 of its potential returns per unit of risk. Banc of California is currently generating about 0.09 per unit of risk. If you would invest 74,057 in United Rentals on September 15, 2024 and sell it today you would earn a total of 3,825 from holding United Rentals or generate 5.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
United Rentals vs. Banc of California
Performance |
Timeline |
United Rentals |
Banc of California |
United Rentals and Banc Of Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and Banc Of
The main advantage of trading using opposite United Rentals and Banc Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Banc Of 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 Banc Of will offset losses from the drop in Banc Of's long position.United Rentals vs. HE Equipment Services | United Rentals vs. GATX Corporation | United Rentals vs. McGrath RentCorp | United Rentals vs. Alta Equipment Group |
Banc Of vs. Axos Financial | Banc Of vs. Byline Bancorp | Banc Of vs. KB Financial Group | Banc Of vs. Nu Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |