Correlation Between United Rentals and BioNTech
Can any of the company-specific risk be diversified away by investing in both United Rentals and BioNTech 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 BioNTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and BioNTech SE, you can compare the effects of market volatilities on United Rentals and BioNTech 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 BioNTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and BioNTech.
Diversification Opportunities for United Rentals and BioNTech
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and BioNTech is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and BioNTech SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioNTech SE 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 BioNTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioNTech SE has no effect on the direction of United Rentals i.e., United Rentals and BioNTech go up and down completely randomly.
Pair Corralation between United Rentals and BioNTech
Considering the 90-day investment horizon United Rentals is expected to generate 0.74 times more return on investment than BioNTech. However, United Rentals is 1.34 times less risky than BioNTech. It trades about 0.18 of its potential returns per unit of risk. BioNTech SE is currently generating about -0.01 per unit of risk. If you would invest 72,264 in United Rentals on October 21, 2024 and sell it today you would earn a total of 4,836 from holding United Rentals or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. BioNTech SE
Performance |
| Timeline |
| United Rentals |
| BioNTech SE |
United Rentals and BioNTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and BioNTech
The main advantage of trading using opposite United Rentals and BioNTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, BioNTech 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 BioNTech will offset losses from the drop in BioNTech'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 |
| BioNTech vs. Novavax | BioNTech vs. Ginkgo Bioworks Holdings | BioNTech vs. Crispr Therapeutics AG | BioNTech vs. Ocean Biomedical |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |