Correlation Between United Rentals and Ishares Us
Can any of the company-specific risk be diversified away by investing in both United Rentals and Ishares Us 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 Ishares Us into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Ishares Long Credit, you can compare the effects of market volatilities on United Rentals and Ishares Us 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 Ishares Us. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Ishares Us.
Diversification Opportunities for United Rentals and Ishares Us
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Ishares is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Ishares Long Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ishares Long Credit 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 Ishares Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ishares Long Credit has no effect on the direction of United Rentals i.e., United Rentals and Ishares Us go up and down completely randomly.
Pair Corralation between United Rentals and Ishares Us
Considering the 90-day investment horizon United Rentals is expected to generate 2.92 times more return on investment than Ishares Us. However, United Rentals is 2.92 times more volatile than Ishares Long Credit. It trades about 0.09 of its potential returns per unit of risk. Ishares Long Credit is currently generating about 0.02 per unit of risk. If you would invest 35,864 in United Rentals on September 3, 2024 and sell it today you would earn a total of 50,736 from holding United Rentals or generate 141.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. Ishares Long Credit
Performance |
| Timeline |
| United Rentals |
| Ishares Long Credit |
United Rentals and Ishares Us Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Ishares Us
The main advantage of trading using opposite United Rentals and Ishares Us positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Ishares Us 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 Ishares Us will offset losses from the drop in Ishares Us' long position.| United Rentals vs. Alta Equipment Group | United Rentals vs. McGrath RentCorp | United Rentals vs. Herc Holdings | United Rentals vs. HE Equipment Services |
| Ishares Us vs. Franklin Government Money | Ishares Us vs. Lord Abbett Emerging | Ishares Us vs. General Money Market | Ishares Us vs. Ashmore Emerging Markets |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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