Correlation Between United Rentals and Desjardins Melodia

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both United Rentals and Desjardins Melodia 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 Desjardins Melodia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Desjardins Melodia Balanced, you can compare the effects of market volatilities on United Rentals and Desjardins Melodia 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 Desjardins Melodia. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Desjardins Melodia.

Diversification Opportunities for United Rentals and Desjardins Melodia

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between United and Desjardins is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Desjardins Melodia Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desjardins Melodia 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 Desjardins Melodia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desjardins Melodia has no effect on the direction of United Rentals i.e., United Rentals and Desjardins Melodia go up and down completely randomly.

Pair Corralation between United Rentals and Desjardins Melodia

Considering the 90-day investment horizon United Rentals is expected to generate 5.89 times more return on investment than Desjardins Melodia. However, United Rentals is 5.89 times more volatile than Desjardins Melodia Balanced. It trades about 0.11 of its potential returns per unit of risk. Desjardins Melodia Balanced is currently generating about 0.18 per unit of risk. If you would invest  44,333  in United Rentals on September 4, 2024 and sell it today you would earn a total of  41,372  from holding United Rentals or generate 93.32% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy99.66%
ValuesDaily Returns

United Rentals  vs.  Desjardins Melodia Balanced

 Performance 
       Timeline  
United Rentals 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in United Rentals are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, United Rentals demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Desjardins Melodia 

Risk-Adjusted Performance

22 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Desjardins Melodia Balanced are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Desjardins Melodia may actually be approaching a critical reversion point that can send shares even higher in January 2025.

United Rentals and Desjardins Melodia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with United Rentals and Desjardins Melodia

The main advantage of trading using opposite United Rentals and Desjardins Melodia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Desjardins Melodia 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 Desjardins Melodia will offset losses from the drop in Desjardins Melodia'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
The idea behind United Rentals and Desjardins Melodia Balanced pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Desjardins Melodia vs. RBC Select Balanced
Desjardins Melodia vs. TD Comfort Balanced
Desjardins Melodia vs. Mawer Balanced
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Complementary Tools

Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY