Correlation Between U Haul and Turning Point
Can any of the company-specific risk be diversified away by investing in both U Haul and Turning Point 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 Turning Point 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 Turning Point Brands, you can compare the effects of market volatilities on U Haul and Turning Point 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 Turning Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Turning Point.
Diversification Opportunities for U Haul and Turning Point
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UHAL and Turning is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Turning Point Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turning Point Brands 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 Turning Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turning Point Brands has no effect on the direction of U Haul i.e., U Haul and Turning Point go up and down completely randomly.
Pair Corralation between U Haul and Turning Point
Given the investment horizon of 90 days U Haul Holding is expected to generate 1.02 times more return on investment than Turning Point. However, U Haul is 1.02 times more volatile than Turning Point Brands. It trades about 0.01 of its potential returns per unit of risk. Turning Point Brands is currently generating about -0.07 per unit of risk. If you would invest 6,822 in U Haul Holding on September 20, 2024 and sell it today you would earn a total of 4.00 from holding U Haul Holding or generate 0.06% 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. Turning Point Brands
Performance |
| Timeline |
| U Haul Holding |
| Turning Point Brands |
U Haul and Turning Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Turning Point
The main advantage of trading using opposite U Haul and Turning Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, Turning Point 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 Turning Point will offset losses from the drop in Turning Point's long position.| U Haul vs. Air Lease | U Haul vs. HE Equipment Services | U Haul vs. GATX Corporation | U Haul vs. Custom Truck One |
| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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