Correlation Between 37940XAP7 and U Haul

Can any of the company-specific risk be diversified away by investing in both 37940XAP7 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 37940XAP7 and U Haul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GPN 495 15 AUG 27 and U Haul Holding, you can compare the effects of market volatilities on 37940XAP7 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 37940XAP7 with a short position of U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of 37940XAP7 and U Haul.

Diversification Opportunities for 37940XAP7 and U Haul

0.25

Correlation Coefficient

37940XAP7  U Haul

Modest diversification

The 3 months correlation between 37940XAP7 and UHAL is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding GPN 495 15 AUG 27 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 37940XAP7 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 GPN 495 15 AUG 27 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 37940XAP7 i.e., 37940XAP7 and U Haul go up and down completely randomly.

Pair Corralation between 37940XAP7 and U Haul

Assuming the 90 days trading horizon GPN 495 15 AUG 27 is expected to under-perform the U Haul. But the bond apears to be less risky and, when comparing its historical volatility, GPN 495 15 AUG 27 is 1.12 times less risky than U Haul. The bond trades about -0.07 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  7,021  in U Haul Holding on September 12, 2024 and sell it today you would earn a total of  352.00  from holding U Haul Holding or generate 5.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

GPN 495 15 AUG 27  vs.  U Haul Holding

GPN 495 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GPN 495 15 AUG 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 37940XAP7 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

U Haul Holding

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in U Haul Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. 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 37940XAP7 and U Haul

The main advantage of trading using opposite 37940XAP7 and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 37940XAP7 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 GPN 495 15 AUG 27 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.