Correlation Between NYSE Composite and U Haul
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and U Haul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and U Haul Holding, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and U Haul.
Diversification Opportunities for NYSE Composite and U Haul
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NYSE and UHAL is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and U Haul go up and down completely randomly.
Pair Corralation between NYSE Composite and U Haul
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.39 times more return on investment than U Haul. However, NYSE Composite is 2.54 times less risky than U Haul. It trades about 0.21 of its potential returns per unit of risk. U Haul Holding is currently generating about -0.05 per unit of risk. If you would invest 1,954,967 in NYSE Composite on August 27, 2024 and sell it today you would earn a total of 57,378 from holding NYSE Composite or generate 2.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. U Haul Holding
Performance |
| Timeline |
NYSE Composite and U Haul Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
U Haul Holding
Pair trading matchups for U Haul
Pair Trading with NYSE Composite and U Haul
The main advantage of trading using opposite NYSE Composite and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Grocery Outlet Holding | NYSE Composite vs. Tencent Music Entertainment | NYSE Composite vs. SunLink Health Systems | NYSE Composite vs. Getty Realty |
| U Haul vs. AerCap Holdings NV | U Haul vs. Alta Equipment Group | U Haul vs. PROG Holdings | U Haul vs. GATX Corporation |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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