Correlation Between UNITED RENTALS and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both UNITED RENTALS and ALBIS LEASING 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 UNITED RENTALS and ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNITED RENTALS and ALBIS LEASING AG, you can compare the effects of market volatilities on UNITED RENTALS and ALBIS LEASING 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 UNITED RENTALS with a short position of ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED RENTALS and ALBIS LEASING.
Diversification Opportunities for UNITED RENTALS and ALBIS LEASING
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between UNITED and ALBIS is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding UNITED RENTALS and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG and UNITED RENTALS 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 UNITED RENTALS are associated (or correlated) with ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of UNITED RENTALS i.e., UNITED RENTALS and ALBIS LEASING go up and down completely randomly.
Pair Corralation between UNITED RENTALS and ALBIS LEASING
Assuming the 90 days trading horizon UNITED RENTALS is expected to under-perform the ALBIS LEASING. In addition to that, UNITED RENTALS is 12.46 times more volatile than ALBIS LEASING AG. It trades about -0.43 of its total potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.21 per unit of volatility. If you would invest 276.00 in ALBIS LEASING AG on November 28, 2024 and sell it today you would earn a total of 2.00 from holding ALBIS LEASING AG or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNITED RENTALS vs. ALBIS LEASING AG
Performance |
| Timeline |
| UNITED RENTALS |
| ALBIS LEASING AG |
UNITED RENTALS and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED RENTALS and ALBIS LEASING
The main advantage of trading using opposite UNITED RENTALS and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED RENTALS position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| UNITED RENTALS vs. Columbia Sportswear | UNITED RENTALS vs. MOLSON RS BEVERAGE | UNITED RENTALS vs. UNIVERSAL DISPLAY | UNITED RENTALS vs. InPlay Oil Corp |
| ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple Inc | ALBIS LEASING vs. Apple 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |