Correlation Between United Rentals and KYUSHU EL
Can any of the company-specific risk be diversified away by investing in both United Rentals and KYUSHU EL 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 KYUSHU EL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and KYUSHU EL PWR, you can compare the effects of market volatilities on United Rentals and KYUSHU EL 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 KYUSHU EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and KYUSHU EL.
Diversification Opportunities for United Rentals and KYUSHU EL
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and KYUSHU is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and KYUSHU EL PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KYUSHU EL PWR 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 KYUSHU EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KYUSHU EL PWR has no effect on the direction of United Rentals i.e., United Rentals and KYUSHU EL go up and down completely randomly.
Pair Corralation between United Rentals and KYUSHU EL
Considering the 90-day investment horizon United Rentals is expected to generate 1.05 times more return on investment than KYUSHU EL. However, United Rentals is 1.05 times more volatile than KYUSHU EL PWR. It trades about 0.09 of its potential returns per unit of risk. KYUSHU EL PWR is currently generating about 0.07 per unit of risk. If you would invest 35,974 in United Rentals on September 4, 2024 and sell it today you would earn a total of 49,731 from holding United Rentals or generate 138.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
United Rentals vs. KYUSHU EL PWR
Performance |
| Timeline |
| United Rentals |
| KYUSHU EL PWR |
United Rentals and KYUSHU EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and KYUSHU EL
The main advantage of trading using opposite United Rentals and KYUSHU EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, KYUSHU EL 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 KYUSHU EL will offset losses from the drop in KYUSHU EL'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 |
| KYUSHU EL vs. Cal Maine Foods | KYUSHU EL vs. INDOFOOD AGRI RES | KYUSHU EL vs. TYSON FOODS A | KYUSHU EL vs. SENECA FOODS A |
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.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |