Correlation Between U Haul and I Minerals
Can any of the company-specific risk be diversified away by investing in both U Haul and I Minerals 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 I Minerals 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 I Minerals, you can compare the effects of market volatilities on U Haul and I Minerals 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 I Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and I Minerals.
Diversification Opportunities for U Haul and I Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UHAL and IMAHF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and I Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Minerals 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 I Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Minerals has no effect on the direction of U Haul i.e., U Haul and I Minerals go up and down completely randomly.
Pair Corralation between U Haul and I Minerals
Given the investment horizon of 90 days U Haul is expected to generate 112.41 times less return on investment than I Minerals. But when comparing it to its historical volatility, U Haul Holding is 30.04 times less risky than I Minerals. It trades about 0.02 of its potential returns per unit of risk. I Minerals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.00 in I Minerals on September 4, 2024 and sell it today you would earn a total of 0.50 from holding I Minerals or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. I Minerals
Performance |
| Timeline |
| U Haul Holding |
| I Minerals |
U Haul and I Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and I Minerals
The main advantage of trading using opposite U Haul and I Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, I Minerals 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 I Minerals will offset losses from the drop in I Minerals' long position.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| I Minerals vs. Air Products and | I Minerals vs. Avient Corp | I Minerals vs. SunOpta | I Minerals vs. Ecolab Inc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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