Correlation Between United Rentals and CI Global
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By analyzing existing cross correlation between United Rentals and CI Global Resource, you can compare the effects of market volatilities on United Rentals and CI Global 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 CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and CI Global.
Diversification Opportunities for United Rentals and CI Global
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and 0P000070I2 is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and CI Global Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Resource 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 CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Resource has no effect on the direction of United Rentals i.e., United Rentals and CI Global go up and down completely randomly.
Pair Corralation between United Rentals and CI Global
Considering the 90-day investment horizon United Rentals is expected to generate 1.71 times more return on investment than CI Global. However, United Rentals is 1.71 times more volatile than CI Global Resource. It trades about 0.18 of its potential returns per unit of risk. CI Global Resource is currently generating about 0.13 per unit of risk. If you would invest 69,926 in United Rentals on September 4, 2024 and sell it today you would earn a total of 15,779 from holding United Rentals or generate 22.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
United Rentals vs. CI Global Resource
Performance |
| Timeline |
| United Rentals |
| CI Global Resource |
United Rentals and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and CI Global
The main advantage of trading using opposite United Rentals and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global'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 |
| CI Global vs. iShares Canadian HYBrid | CI Global vs. Altagas Cum Red | CI Global vs. European Residential Real | CI Global vs. iShares Fundamental Hedged |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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