Correlation Between U Haul and Calmare Therapeutics

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Can any of the company-specific risk be diversified away by investing in both U Haul and Calmare Therapeutics 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 Calmare Therapeutics 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 Calmare Therapeutics, you can compare the effects of market volatilities on U Haul and Calmare Therapeutics 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 Calmare Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Calmare Therapeutics.

Diversification Opportunities for U Haul and Calmare Therapeutics

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between UHAL and Calmare is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Calmare Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calmare Therapeutics 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 Calmare Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calmare Therapeutics has no effect on the direction of U Haul i.e., U Haul and Calmare Therapeutics go up and down completely randomly.

Pair Corralation between U Haul and Calmare Therapeutics

If you would invest  6,019  in U Haul Holding on September 20, 2024 and sell it today you would earn a total of  807.00  from holding U Haul Holding or generate 13.41% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy0.61%
ValuesDaily Returns

U Haul Holding  vs.  Calmare Therapeutics

 Performance 
       Timeline  
U Haul Holding 

Risk-Adjusted Performance

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Over the last 90 days U Haul Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
Calmare Therapeutics 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Calmare Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Calmare Therapeutics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

U Haul and Calmare Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with U Haul and Calmare Therapeutics

The main advantage of trading using opposite U Haul and Calmare Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, Calmare Therapeutics 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 Calmare Therapeutics will offset losses from the drop in Calmare Therapeutics' long position.
The idea behind U Haul Holding and Calmare Therapeutics pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

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