Correlation Between AZN Capital and McGrath RentCorp
Can any of the company-specific risk be diversified away by investing in both AZN Capital and McGrath RentCorp 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 AZN Capital and McGrath RentCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AZN Capital Corp and McGrath RentCorp, you can compare the effects of market volatilities on AZN Capital and McGrath RentCorp 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 AZN Capital with a short position of McGrath RentCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AZN Capital and McGrath RentCorp.
Diversification Opportunities for AZN Capital and McGrath RentCorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AZN and McGrath is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AZN Capital Corp and McGrath RentCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on McGrath RentCorp and AZN Capital 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 AZN Capital Corp are associated (or correlated) with McGrath RentCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of McGrath RentCorp has no effect on the direction of AZN Capital i.e., AZN Capital and McGrath RentCorp go up and down completely randomly.
Pair Corralation between AZN Capital and McGrath RentCorp
If you would invest 11,370 in McGrath RentCorp on September 1, 2024 and sell it today you would earn a total of 815.00 from holding McGrath RentCorp or generate 7.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AZN Capital Corp vs. McGrath RentCorp
Performance |
| Timeline |
| AZN Capital Corp |
| McGrath RentCorp |
AZN Capital and McGrath RentCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AZN Capital and McGrath RentCorp
The main advantage of trading using opposite AZN Capital and McGrath RentCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AZN Capital position performs unexpectedly, McGrath RentCorp 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 McGrath RentCorp will offset losses from the drop in McGrath RentCorp's long position.| AZN Capital vs. United Rentals | AZN Capital vs. Ashtead Gro | AZN Capital vs. Ashtead Group plc | AZN Capital vs. AerCap Holdings NV |
| McGrath RentCorp vs. Alta Equipment Group | McGrath RentCorp vs. GATX Corporation | McGrath RentCorp vs. Mega Matrix Corp | McGrath RentCorp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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