Correlation Between United Rentals and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both United Rentals and Segall Bryant 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 Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Segall Bryant Hamill, you can compare the effects of market volatilities on United Rentals and Segall Bryant 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 Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Segall Bryant.
Diversification Opportunities for United Rentals and Segall Bryant
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between United and Segall is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill 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 Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of United Rentals i.e., United Rentals and Segall Bryant go up and down completely randomly.
Pair Corralation between United Rentals and Segall Bryant
Considering the 90-day investment horizon United Rentals is expected to generate 3.02 times more return on investment than Segall Bryant. However, United Rentals is 3.02 times more volatile than Segall Bryant Hamill. It trades about 0.1 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.23 per unit of risk. If you would invest 80,076 in United Rentals on September 5, 2024 and sell it today you would earn a total of 6,748 from holding United Rentals or generate 8.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
United Rentals vs. Segall Bryant Hamill
Performance |
Timeline |
United Rentals |
Segall Bryant Hamill |
United Rentals and Segall Bryant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and Segall Bryant
The main advantage of trading using opposite United Rentals and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant'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 |
Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill | Segall Bryant vs. Segall Bryant Hamill |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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