Correlation Between United Rentals and Global Techs
Can any of the company-specific risk be diversified away by investing in both United Rentals and Global Techs 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 Global Techs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Global Techs, you can compare the effects of market volatilities on United Rentals and Global Techs 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 Global Techs. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Global Techs.
Diversification Opportunities for United Rentals and Global Techs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Global Techs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Techs 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 Global Techs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Techs has no effect on the direction of United Rentals i.e., United Rentals and Global Techs go up and down completely randomly.
Pair Corralation between United Rentals and Global Techs
If you would invest (100.00) in Global Techs on December 1, 2024 and sell it today you would earn a total of 100.00 from holding Global Techs or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
United Rentals vs. Global Techs
Performance |
Timeline |
United Rentals |
Global Techs |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
United Rentals and Global Techs Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and Global Techs
The main advantage of trading using opposite United Rentals and Global Techs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Global Techs 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 Global Techs will offset losses from the drop in Global Techs' long position.United Rentals vs. HE Equipment Services | United Rentals vs. GATX Corporation | United Rentals vs. McGrath RentCorp | United Rentals vs. Alta Equipment Group |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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