Correlation Between United Rentals and MHP Hotel
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By analyzing existing cross correlation between United Rentals and MHP Hotel AG, you can compare the effects of market volatilities on United Rentals and MHP Hotel 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 MHP Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and MHP Hotel.
Diversification Opportunities for United Rentals and MHP Hotel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between United and MHP is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and MHP Hotel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MHP Hotel 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 MHP Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MHP Hotel AG has no effect on the direction of United Rentals i.e., United Rentals and MHP Hotel go up and down completely randomly.
Pair Corralation between United Rentals and MHP Hotel
Assuming the 90 days horizon United Rentals is expected to generate 1.01 times more return on investment than MHP Hotel. However, United Rentals is 1.01 times more volatile than MHP Hotel AG. It trades about 0.13 of its potential returns per unit of risk. MHP Hotel AG is currently generating about 0.02 per unit of risk. If you would invest 75,010 in United Rentals on August 28, 2024 and sell it today you would earn a total of 6,790 from holding United Rentals or generate 9.05% 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. MHP Hotel AG
Performance |
| Timeline |
| United Rentals |
| MHP Hotel AG |
United Rentals and MHP Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and MHP Hotel
The main advantage of trading using opposite United Rentals and MHP Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, MHP Hotel 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 MHP Hotel will offset losses from the drop in MHP Hotel's long position.| United Rentals vs. 24SEVENOFFICE GROUP AB | United Rentals vs. Corporate Office Properties | United Rentals vs. MTI WIRELESS EDGE | United Rentals vs. CITY OFFICE REIT |
| MHP Hotel vs. Lloyds Banking Group | MHP Hotel vs. KB Financial Group | MHP Hotel vs. ORIX Corporation | MHP Hotel vs. Orix Corp Ads |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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