Correlation Between FlexShopper and U Haul
Can any of the company-specific risk be diversified away by investing in both FlexShopper 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 FlexShopper and U Haul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FlexShopper and U Haul Holding, you can compare the effects of market volatilities on FlexShopper 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 FlexShopper with a short position of U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of FlexShopper and U Haul.
Diversification Opportunities for FlexShopper and U Haul
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FlexShopper and UHAL is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding FlexShopper 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 FlexShopper 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 FlexShopper 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 FlexShopper i.e., FlexShopper and U Haul go up and down completely randomly.
Pair Corralation between FlexShopper and U Haul
Given the investment horizon of 90 days FlexShopper is expected to generate 3.38 times more return on investment than U Haul. However, FlexShopper is 3.38 times more volatile than U Haul Holding. It trades about 0.13 of its potential returns per unit of risk. U Haul Holding is currently generating about -0.03 per unit of risk. If you would invest 148.00 in FlexShopper on August 30, 2024 and sell it today you would earn a total of 21.00 from holding FlexShopper or generate 14.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
FlexShopper vs. U Haul Holding
Performance |
| Timeline |
| FlexShopper |
| U Haul Holding |
FlexShopper and U Haul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FlexShopper and U Haul
The main advantage of trading using opposite FlexShopper and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FlexShopper 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.| FlexShopper vs. AZN Capital Corp | FlexShopper vs. Fortress Transportation and | FlexShopper vs. Ashtead Gro | FlexShopper vs. Alta Equipment Group |
| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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