Correlation Between HE Equipment and MARKEL
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By analyzing existing cross correlation between HE Equipment Services and MARKEL P 43, you can compare the effects of market volatilities on HE Equipment and MARKEL 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 HE Equipment with a short position of MARKEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and MARKEL.
Diversification Opportunities for HE Equipment and MARKEL
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HEES and MARKEL is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and MARKEL P 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKEL P 43 and HE Equipment 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 HE Equipment Services are associated (or correlated) with MARKEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKEL P 43 has no effect on the direction of HE Equipment i.e., HE Equipment and MARKEL go up and down completely randomly.
Pair Corralation between HE Equipment and MARKEL
Given the investment horizon of 90 days HE Equipment is expected to generate 170.83 times less return on investment than MARKEL. But when comparing it to its historical volatility, HE Equipment Services is 49.81 times less risky than MARKEL. It trades about 0.03 of its potential returns per unit of risk. MARKEL P 43 is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8,112 in MARKEL P 43 on September 13, 2024 and sell it today you would earn a total of 140.00 from holding MARKEL P 43 or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 23.68% |
| Values | Daily Returns |
HE Equipment Services vs. MARKEL P 43
Performance |
| Timeline |
| HE Equipment Services |
| MARKEL P 43 |
HE Equipment and MARKEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and MARKEL
The main advantage of trading using opposite HE Equipment and MARKEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment position performs unexpectedly, MARKEL 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 MARKEL will offset losses from the drop in MARKEL's long position.| HE Equipment vs. GATX Corporation | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Alta Equipment Group | HE Equipment vs. Ryder System |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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