Correlation Between U Haul and FP Newspapers
Can any of the company-specific risk be diversified away by investing in both U Haul and FP Newspapers 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 FP Newspapers 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 FP Newspapers, you can compare the effects of market volatilities on U Haul and FP Newspapers 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 FP Newspapers. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and FP Newspapers.
Diversification Opportunities for U Haul and FP Newspapers
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between UHAL and FPNUF is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and FP Newspapers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FP Newspapers 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 FP Newspapers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FP Newspapers has no effect on the direction of U Haul i.e., U Haul and FP Newspapers go up and down completely randomly.
Pair Corralation between U Haul and FP Newspapers
Given the investment horizon of 90 days U Haul Holding is expected to generate 0.46 times more return on investment than FP Newspapers. However, U Haul Holding is 2.18 times less risky than FP Newspapers. It trades about 0.09 of its potential returns per unit of risk. FP Newspapers is currently generating about -0.09 per unit of risk. If you would invest 6,271 in U Haul Holding on September 12, 2024 and sell it today you would earn a total of 1,102 from holding U Haul Holding or generate 17.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. FP Newspapers
Performance |
| Timeline |
| U Haul Holding |
| FP Newspapers |
U Haul and FP Newspapers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and FP Newspapers
The main advantage of trading using opposite U Haul and FP Newspapers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, FP Newspapers 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 FP Newspapers will offset losses from the drop in FP Newspapers' long position.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| FP Newspapers vs. Avadel Pharmaceuticals PLC | FP Newspapers vs. Eastman Chemical | FP Newspapers vs. Xtant Medical Holdings | FP Newspapers vs. Sonida Senior Living |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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