Correlation Between U Haul and National Vision
Can any of the company-specific risk be diversified away by investing in both U Haul and National Vision 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 National Vision 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 National Vision Holdings, you can compare the effects of market volatilities on U Haul and National Vision 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 National Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and National Vision.
Diversification Opportunities for U Haul and National Vision
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UHAL and National is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and National Vision Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Vision 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 National Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Vision Holdings has no effect on the direction of U Haul i.e., U Haul and National Vision go up and down completely randomly.
Pair Corralation between U Haul and National Vision
Given the investment horizon of 90 days U Haul Holding is expected to generate 0.51 times more return on investment than National Vision. However, U Haul Holding is 1.95 times less risky than National Vision. It trades about 0.05 of its potential returns per unit of risk. National Vision Holdings is currently generating about -0.04 per unit of risk. If you would invest 5,882 in U Haul Holding on September 3, 2024 and sell it today you would earn a total of 1,252 from holding U Haul Holding or generate 21.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. National Vision Holdings
Performance |
| Timeline |
| U Haul Holding |
| National Vision Holdings |
U Haul and National Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and National Vision
The main advantage of trading using opposite U Haul and National Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, National Vision 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 Vision will offset losses from the drop in National Vision'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 |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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