Correlation Between UNITED RENTALS and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both UNITED RENTALS and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNITED RENTALS and CEOTRONICS, you can compare the effects of market volatilities on UNITED RENTALS and CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of UNITED RENTALS and CEOTRONICS (CEKSG).
Diversification Opportunities for UNITED RENTALS and CEOTRONICS (CEKSG)
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between UNITED and CEOTRONICS is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding UNITED RENTALS and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of UNITED RENTALS i.e., UNITED RENTALS and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between UNITED RENTALS and CEOTRONICS (CEKSG)
Assuming the 90 days trading horizon UNITED RENTALS is expected to under-perform the CEOTRONICS (CEKSG). In addition to that, UNITED RENTALS is 1.06 times more volatile than CEOTRONICS. It trades about -0.11 of its total potential returns per unit of risk. CEOTRONICS is currently generating about 0.1 per unit of volatility. If you would invest 590.00 in CEOTRONICS on October 17, 2024 and sell it today you would earn a total of 20.00 from holding CEOTRONICS or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNITED RENTALS vs. CEOTRONICS
Performance |
| Timeline |
| UNITED RENTALS |
| CEOTRONICS (CEKSG) |
UNITED RENTALS and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNITED RENTALS and CEOTRONICS (CEKSG)
The main advantage of trading using opposite UNITED RENTALS and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNITED RENTALS position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| UNITED RENTALS vs. MCEWEN MINING INC | UNITED RENTALS vs. GALENA MINING LTD | UNITED RENTALS vs. alstria office REIT AG | UNITED RENTALS vs. KENEDIX OFFICE INV |
| CEOTRONICS (CEKSG) vs. MeVis Medical Solutions | CEOTRONICS (CEKSG) vs. ONWARD MEDICAL BV | CEOTRONICS (CEKSG) vs. GRENKELEASING Dusseldorf | CEOTRONICS (CEKSG) vs. UNITED RENTALS |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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