Correlation Between HE Equipment and NATIONAL
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By analyzing existing cross correlation between HE Equipment Services and NATIONAL RURAL UTILS, you can compare the effects of market volatilities on HE Equipment and NATIONAL 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 NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and NATIONAL.
Diversification Opportunities for HE Equipment and NATIONAL
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HEES and NATIONAL is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and NATIONAL RURAL UTILS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NATIONAL RURAL UTILS 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 NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NATIONAL RURAL UTILS has no effect on the direction of HE Equipment i.e., HE Equipment and NATIONAL go up and down completely randomly.
Pair Corralation between HE Equipment and NATIONAL
Given the investment horizon of 90 days HE Equipment Services is expected to generate 3.12 times more return on investment than NATIONAL. However, HE Equipment is 3.12 times more volatile than NATIONAL RURAL UTILS. It trades about 0.21 of its potential returns per unit of risk. NATIONAL RURAL UTILS is currently generating about 0.04 per unit of risk. If you would invest 5,225 in HE Equipment Services on September 1, 2024 and sell it today you would earn a total of 749.00 from holding HE Equipment Services or generate 14.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
HE Equipment Services vs. NATIONAL RURAL UTILS
Performance |
| Timeline |
| HE Equipment Services |
| NATIONAL RURAL UTILS |
HE Equipment and NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and NATIONAL
The main advantage of trading using opposite HE Equipment and NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment position performs unexpectedly, NATIONAL 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 NATIONAL will offset losses from the drop in NATIONAL's long position.| HE Equipment vs. McGrath RentCorp | HE Equipment vs. Herc Holdings | HE Equipment vs. PROG Holdings | HE Equipment vs. Custom Truck One |
| NATIONAL vs. Academy Sports Outdoors | NATIONAL vs. Life Time Group | NATIONAL vs. LithiumBank Resources Corp | NATIONAL vs. Sonos Inc |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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