Correlation Between ALBIS LEASING and UNITED RENTALS
Can any of the company-specific risk be diversified away by investing in both ALBIS LEASING and UNITED RENTALS 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 ALBIS LEASING and UNITED RENTALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALBIS LEASING AG and UNITED RENTALS, you can compare the effects of market volatilities on ALBIS LEASING and UNITED RENTALS 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 ALBIS LEASING with a short position of UNITED RENTALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALBIS LEASING and UNITED RENTALS.
Diversification Opportunities for ALBIS LEASING and UNITED RENTALS
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ALBIS and UNITED is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding ALBIS LEASING AG and UNITED RENTALS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED RENTALS and ALBIS LEASING 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 ALBIS LEASING AG are associated (or correlated) with UNITED RENTALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED RENTALS has no effect on the direction of ALBIS LEASING i.e., ALBIS LEASING and UNITED RENTALS go up and down completely randomly.
Pair Corralation between ALBIS LEASING and UNITED RENTALS
Assuming the 90 days trading horizon ALBIS LEASING AG is expected to under-perform the UNITED RENTALS. But the stock apears to be less risky and, when comparing its historical volatility, ALBIS LEASING AG is 1.81 times less risky than UNITED RENTALS. The stock trades about -0.08 of its potential returns per unit of risk. The UNITED RENTALS is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 69,080 in UNITED RENTALS on October 23, 2024 and sell it today you would earn a total of 5,260 from holding UNITED RENTALS or generate 7.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ALBIS LEASING AG vs. UNITED RENTALS
Performance |
| Timeline |
| ALBIS LEASING AG |
| UNITED RENTALS |
ALBIS LEASING and UNITED RENTALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALBIS LEASING and UNITED RENTALS
The main advantage of trading using opposite ALBIS LEASING and UNITED RENTALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALBIS LEASING position performs unexpectedly, UNITED RENTALS 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 UNITED RENTALS will offset losses from the drop in UNITED RENTALS's long position.| ALBIS LEASING vs. Wyndham Hotels Resorts | ALBIS LEASING vs. TOWNSQUARE MEDIA INC | ALBIS LEASING vs. Flutter Entertainment PLC | ALBIS LEASING vs. Sunstone Hotel Investors |
| UNITED RENTALS vs. Stag Industrial | UNITED RENTALS vs. MTY Food Group | UNITED RENTALS vs. Performance Food Group | UNITED RENTALS vs. Jacquet Metal Service |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stocks Directory Find actively traded stocks across global markets |