Correlation Between United Rentals and Nighthawk Gold
Can any of the company-specific risk be diversified away by investing in both United Rentals and Nighthawk Gold 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 Nighthawk Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Nighthawk Gold Corp, you can compare the effects of market volatilities on United Rentals and Nighthawk Gold 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 Nighthawk Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Nighthawk Gold.
Diversification Opportunities for United Rentals and Nighthawk Gold
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between United and Nighthawk is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Nighthawk Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nighthawk Gold Corp 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 Nighthawk Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nighthawk Gold Corp has no effect on the direction of United Rentals i.e., United Rentals and Nighthawk Gold go up and down completely randomly.
Pair Corralation between United Rentals and Nighthawk Gold
If you would invest 67,982 in United Rentals on September 6, 2024 and sell it today you would earn a total of 18,842 from holding United Rentals or generate 27.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
United Rentals vs. Nighthawk Gold Corp
Performance |
Timeline |
United Rentals |
Nighthawk Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and Nighthawk Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and Nighthawk Gold
The main advantage of trading using opposite United Rentals and Nighthawk Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Nighthawk Gold 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 Nighthawk Gold will offset losses from the drop in Nighthawk Gold'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 |
Nighthawk Gold vs. Endurance Gold | Nighthawk Gold vs. Red Pine Exploration | Nighthawk Gold vs. Puma Exploration | Nighthawk Gold vs. White Gold Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |