Correlation Between U Haul and Zumiez
Can any of the company-specific risk be diversified away by investing in both U Haul and Zumiez 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 Zumiez 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 Zumiez Inc, you can compare the effects of market volatilities on U Haul and Zumiez 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 Zumiez. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Haul and Zumiez.
Diversification Opportunities for U Haul and Zumiez
Good diversification
The 3 months correlation between UHAL and Zumiez is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and Zumiez Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zumiez Inc 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 Zumiez. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zumiez Inc has no effect on the direction of U Haul i.e., U Haul and Zumiez go up and down completely randomly.
Pair Corralation between U Haul and Zumiez
Given the investment horizon of 90 days U Haul Holding is expected to generate 0.59 times more return on investment than Zumiez. However, U Haul Holding is 1.69 times less risky than Zumiez. It trades about 0.02 of its potential returns per unit of risk. Zumiez Inc is currently generating about 0.0 per unit of risk. If you would invest 6,559 in U Haul Holding on September 19, 2024 and sell it today you would earn a total of 679.00 from holding U Haul Holding or generate 10.35% 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. Zumiez Inc
Performance |
| Timeline |
| U Haul Holding |
| Zumiez Inc |
U Haul and Zumiez Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Haul and Zumiez
The main advantage of trading using opposite U Haul and Zumiez positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Haul position performs unexpectedly, Zumiez 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 Zumiez will offset losses from the drop in Zumiez'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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