Correlation Between United Rentals and Firan Technology
Can any of the company-specific risk be diversified away by investing in both United Rentals and Firan Technology 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 Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Firan Technology Group, you can compare the effects of market volatilities on United Rentals and Firan Technology 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 Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Firan Technology.
Diversification Opportunities for United Rentals and Firan Technology
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Firan is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology 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 Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of United Rentals i.e., United Rentals and Firan Technology go up and down completely randomly.
Pair Corralation between United Rentals and Firan Technology
Assuming the 90 days horizon United Rentals is expected to generate 2.72 times less return on investment than Firan Technology. In addition to that, United Rentals is 1.59 times more volatile than Firan Technology Group. It trades about 0.05 of its total potential returns per unit of risk. Firan Technology Group is currently generating about 0.23 per unit of volatility. If you would invest 448.00 in Firan Technology Group on August 25, 2024 and sell it today you would earn a total of 52.00 from holding Firan Technology Group or generate 11.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. Firan Technology Group
Performance |
| Timeline |
| United Rentals |
| Firan Technology |
United Rentals and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Firan Technology
The main advantage of trading using opposite United Rentals and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Firan Technology 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 Firan Technology will offset losses from the drop in Firan Technology's long position.| United Rentals vs. Chuangs China Investments | United Rentals vs. KINGBOARD CHEMICAL | United Rentals vs. Gladstone Investment | United Rentals vs. China BlueChemical |
| Firan Technology vs. BE Semiconductor Industries | Firan Technology vs. HOCHSCHILD MINING | Firan Technology vs. ANGLER GAMING PLC | Firan Technology vs. GameStop Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |