Correlation Between United Rentals and Khiron Life
Can any of the company-specific risk be diversified away by investing in both United Rentals and Khiron Life 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 Khiron Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Khiron Life Sciences, you can compare the effects of market volatilities on United Rentals and Khiron Life 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 Khiron Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Khiron Life.
Diversification Opportunities for United Rentals and Khiron Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Khiron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Khiron Life Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khiron Life Sciences 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 Khiron Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khiron Life Sciences has no effect on the direction of United Rentals i.e., United Rentals and Khiron Life go up and down completely randomly.
Pair Corralation between United Rentals and Khiron Life
If you would invest 66,427 in United Rentals on November 2, 2024 and sell it today you would earn a total of 6,773 from holding United Rentals or generate 10.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
United Rentals vs. Khiron Life Sciences
Performance |
Timeline |
United Rentals |
Khiron Life Sciences |
United Rentals and Khiron Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and Khiron Life
The main advantage of trading using opposite United Rentals and Khiron Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Khiron Life 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 Khiron Life will offset losses from the drop in Khiron Life's long position.United Rentals vs. Siamgas And Petrochemicals | United Rentals vs. Sekisui Chemical Co | United Rentals vs. Shin Etsu Chemical Co | United Rentals vs. X FAB Silicon Foundries |
Khiron Life vs. OPKO HEALTH | Khiron Life vs. CARDINAL HEALTH | Khiron Life vs. Laureate Education | Khiron Life vs. RCI Hospitality Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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