Correlation Between U Haul and Bill
Can any of the company-specific risk be diversified away by investing in both U Haul and Bill 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 U Haul and Bill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and Bill Com Holdings, you can compare the effects of market volatilities on U Haul and Bill 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 U Haul with a short position of Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Bill.
Diversification Opportunities for U Haul and Bill
Very good diversification
The 3 months correlation between UHAL and Bill is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings and U Haul 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 U Haul Holding are associated (or correlated) with Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of U Haul i.e., U Haul and Bill go up and down completely randomly.
Pair Corralation between U Haul and Bill
Given the investment horizon of 90 days U Haul is expected to generate 1.54 times less return on investment than Bill. But when comparing it to its historical volatility, U Haul Holding is 1.85 times less risky than Bill. It trades about 0.05 of its potential returns per unit of risk. Bill Com Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,098 in Bill Com Holdings on September 3, 2024 and sell it today you would earn a total of 1,854 from holding Bill Com Holdings or generate 26.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. Bill Com Holdings
Performance |
| Timeline |
| U Haul Holding |
| Bill Com Holdings |
U Haul and Bill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Bill
The main advantage of trading using opposite U Haul and Bill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, Bill 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 Bill will offset losses from the drop in Bill's long position.| U Haul vs. Hertz Global Hldgs | U Haul vs. Ryder System | U Haul vs. HE Equipment Services | U Haul vs. United Rentals |
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 CEOs Directory module to screen CEOs from public companies around the world.
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