Correlation Between United Rentals and WALGREENS
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By analyzing existing cross correlation between United Rentals and WALGREENS BOOTS ALLIANCE, you can compare the effects of market volatilities on United Rentals and WALGREENS 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 WALGREENS. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and WALGREENS.
Diversification Opportunities for United Rentals and WALGREENS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and WALGREENS is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and WALGREENS BOOTS ALLIANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALGREENS BOOTS ALLIANCE 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 WALGREENS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALGREENS BOOTS ALLIANCE has no effect on the direction of United Rentals i.e., United Rentals and WALGREENS go up and down completely randomly.
Pair Corralation between United Rentals and WALGREENS
Considering the 90-day investment horizon United Rentals is expected to generate 6.21 times more return on investment than WALGREENS. However, United Rentals is 6.21 times more volatile than WALGREENS BOOTS ALLIANCE. It trades about 0.1 of its potential returns per unit of risk. WALGREENS BOOTS ALLIANCE is currently generating about -0.09 per unit of risk. If you would invest 70,503 in United Rentals on September 11, 2024 and sell it today you would earn a total of 9,099 from holding United Rentals or generate 12.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 73.44% |
Values | Daily Returns |
United Rentals vs. WALGREENS BOOTS ALLIANCE
Performance |
Timeline |
United Rentals |
WALGREENS BOOTS ALLIANCE |
United Rentals and WALGREENS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and WALGREENS
The main advantage of trading using opposite United Rentals and WALGREENS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, WALGREENS 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 WALGREENS will offset losses from the drop in WALGREENS'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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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