Correlation Between Aarons and HE Equipment
Can any of the company-specific risk be diversified away by investing in both Aarons and HE Equipment 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 Aarons and HE Equipment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Aarons and HE Equipment Services, you can compare the effects of market volatilities on Aarons and HE Equipment 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 Aarons with a short position of HE Equipment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aarons and HE Equipment.
Diversification Opportunities for Aarons and HE Equipment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aarons and HEES is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Aarons and HE Equipment Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HE Equipment Services and Aarons 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 The Aarons are associated (or correlated) with HE Equipment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HE Equipment Services has no effect on the direction of Aarons i.e., Aarons and HE Equipment go up and down completely randomly.
Pair Corralation between Aarons and HE Equipment
If you would invest 5,659 in HE Equipment Services on August 27, 2024 and sell it today you would earn a total of 217.00 from holding HE Equipment Services or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Aarons vs. HE Equipment Services
Performance |
| Timeline |
| Aarons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| HE Equipment Services |
Aarons and HE Equipment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aarons and HE Equipment
The main advantage of trading using opposite Aarons and HE Equipment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aarons position performs unexpectedly, HE Equipment 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 HE Equipment will offset losses from the drop in HE Equipment's long position.| Aarons vs. Custom Truck One | Aarons vs. PROG Holdings | Aarons vs. McGrath RentCorp | Aarons vs. HE Equipment Services |
| HE Equipment vs. PROG Holdings | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Mega Matrix Corp | HE Equipment vs. FTAI Aviation Ltd |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |