Correlation Between McGrath RentCorp and HyreCar
Can any of the company-specific risk be diversified away by investing in both McGrath RentCorp and HyreCar 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 McGrath RentCorp and HyreCar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between McGrath RentCorp and HyreCar, you can compare the effects of market volatilities on McGrath RentCorp and HyreCar 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 McGrath RentCorp with a short position of HyreCar. Check out your portfolio center. Please also check ongoing floating volatility patterns of McGrath RentCorp and HyreCar.
Diversification Opportunities for McGrath RentCorp and HyreCar
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between McGrath and HyreCar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding McGrath RentCorp and HyreCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyreCar and McGrath RentCorp 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 McGrath RentCorp are associated (or correlated) with HyreCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyreCar has no effect on the direction of McGrath RentCorp i.e., McGrath RentCorp and HyreCar go up and down completely randomly.
Pair Corralation between McGrath RentCorp and HyreCar
If you would invest 0.00 in HyreCar on January 13, 2025 and sell it today you would earn a total of 0.00 from holding HyreCar or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
McGrath RentCorp vs. HyreCar
Performance |
| Timeline |
| McGrath RentCorp |
| HyreCar |
McGrath RentCorp and HyreCar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with McGrath RentCorp and HyreCar
The main advantage of trading using opposite McGrath RentCorp and HyreCar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if McGrath RentCorp position performs unexpectedly, HyreCar 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 HyreCar will offset losses from the drop in HyreCar's long position.| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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