Correlation Between United Rentals and INC
Can any of the company-specific risk be diversified away by investing in both United Rentals and INC 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 INC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and INC, you can compare the effects of market volatilities on United Rentals and INC 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 INC. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and INC.
Diversification Opportunities for United Rentals and INC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and INC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INC 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 INC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INC has no effect on the direction of United Rentals i.e., United Rentals and INC go up and down completely randomly.
Pair Corralation between United Rentals and INC
If you would invest (100.00) in INC on December 26, 2024 and sell it today you would earn a total of 100.00 from holding INC 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. INC
Performance |
Timeline |
United Rentals |
INC |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
United Rentals and INC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and INC
The main advantage of trading using opposite United Rentals and INC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, INC 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 INC will offset losses from the drop in INC'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 |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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