Correlation Between United Rentals and AF2 Capital
Can any of the company-specific risk be diversified away by investing in both United Rentals and AF2 Capital 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 AF2 Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and AF2 Capital Corp, you can compare the effects of market volatilities on United Rentals and AF2 Capital 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 AF2 Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and AF2 Capital.
Diversification Opportunities for United Rentals and AF2 Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and AF2 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and AF2 Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AF2 Capital Corp 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 AF2 Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AF2 Capital Corp has no effect on the direction of United Rentals i.e., United Rentals and AF2 Capital go up and down completely randomly.
Pair Corralation between United Rentals and AF2 Capital
If you would invest 38,457 in United Rentals on September 4, 2024 and sell it today you would earn a total of 47,248 from holding United Rentals or generate 122.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Rentals vs. AF2 Capital Corp
Performance |
| Timeline |
| United Rentals |
| AF2 Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and AF2 Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and AF2 Capital
The main advantage of trading using opposite United Rentals and AF2 Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, AF2 Capital 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 AF2 Capital will offset losses from the drop in AF2 Capital'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 |
| AF2 Capital vs. Goodfood Market Corp | AF2 Capital vs. Jamieson Wellness | AF2 Capital vs. Marimaca Copper Corp | AF2 Capital vs. Ramp Metals |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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