Correlation Between United Rentals and Xinjiang Zhongtai
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By analyzing existing cross correlation between United Rentals and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on United Rentals and Xinjiang Zhongtai 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 Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Xinjiang Zhongtai.
Diversification Opportunities for United Rentals and Xinjiang Zhongtai
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Xinjiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai 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 Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of United Rentals i.e., United Rentals and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between United Rentals and Xinjiang Zhongtai
Considering the 90-day investment horizon United Rentals is expected to under-perform the Xinjiang Zhongtai. But the stock apears to be less risky and, when comparing its historical volatility, United Rentals is 1.25 times less risky than Xinjiang Zhongtai. The stock trades about -0.23 of its potential returns per unit of risk. The Xinjiang Zhongtai Chemical is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 438.00 in Xinjiang Zhongtai Chemical on September 13, 2024 and sell it today you would earn a total of 24.00 from holding Xinjiang Zhongtai Chemical or generate 5.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
United Rentals vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| United Rentals |
| Xinjiang Zhongtai |
United Rentals and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Xinjiang Zhongtai
The main advantage of trading using opposite United Rentals and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| United Rentals vs. HE Equipment Services | United Rentals vs. GATX Corporation | United Rentals vs. McGrath RentCorp | United Rentals vs. Alta Equipment Group |
| Xinjiang Zhongtai vs. Heilongjiang Transport Development | Xinjiang Zhongtai vs. Harbin Hatou Investment | Xinjiang Zhongtai vs. Kunwu Jiuding Investment | Xinjiang Zhongtai vs. Xinjiang Beixin RoadBridge |
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 CEOs Directory module to screen CEOs from public companies around the world.
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