Correlation Between GLENLN and U Haul

Can any of the company-specific risk be diversified away by investing in both GLENLN and U Haul 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 GLENLN and U Haul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GLENLN 4 16 APR 25 and U Haul Holding, you can compare the effects of market volatilities on GLENLN and U Haul 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 GLENLN with a short position of U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLENLN and U Haul.

Diversification Opportunities for GLENLN and U Haul

-0.12

Correlation Coefficient

GLENLN  U Haul

Good diversification

The 3 months correlation between GLENLN and UHAL is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding GLENLN 4 16 APR 25 and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding and GLENLN 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 GLENLN 4 16 APR 25 are associated (or correlated) with U Haul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of GLENLN i.e., GLENLN and U Haul go up and down completely randomly.

Pair Corralation between GLENLN and U Haul

Assuming the 90 days trading horizon GLENLN 4 16 APR 25 is expected to under-perform the U Haul. But the bond apears to be less risky and, when comparing its historical volatility, GLENLN 4 16 APR 25 is 2.02 times less risky than U Haul. The bond trades about -0.15 of its potential returns per unit of risk. The U Haul Holding is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  6,898  in U Haul Holding on December 30, 2024 and sell it today you would lose (405.00) from holding U Haul Holding or give up 5.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	37.1%
Values	Daily Returns

GLENLN 4 16 APR 25  vs.  U Haul Holding

GLENLN 4 16

Risk-Adjusted Performance

Very Weak

Over the last 90 days GLENLN 4 16 APR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for GLENLN 4 16 APR 25 investors.

U Haul Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, U Haul is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with GLENLN and U Haul

The main advantage of trading using opposite GLENLN and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLENLN position performs unexpectedly, U Haul 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 U Haul will offset losses from the drop in U Haul's long position.

The idea behind GLENLN 4 16 APR 25 and U Haul Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.