Correlation Between United Rentals and BTG Pactual
Can any of the company-specific risk be diversified away by investing in both United Rentals and BTG Pactual 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 BTG Pactual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and BTG Pactual Chile, you can compare the effects of market volatilities on United Rentals and BTG Pactual 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 BTG Pactual. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and BTG Pactual.
Diversification Opportunities for United Rentals and BTG Pactual
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and BTG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and BTG Pactual Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTG Pactual Chile 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 BTG Pactual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTG Pactual Chile has no effect on the direction of United Rentals i.e., United Rentals and BTG Pactual go up and down completely randomly.
Pair Corralation between United Rentals and BTG Pactual
If you would invest 78,451 in United Rentals on September 3, 2024 and sell it today you would earn a total of 8,149 from holding United Rentals or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Rentals vs. BTG Pactual Chile
Performance |
| Timeline |
| United Rentals |
| BTG Pactual Chile |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and BTG Pactual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and BTG Pactual
The main advantage of trading using opposite United Rentals and BTG Pactual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, BTG Pactual 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 BTG Pactual will offset losses from the drop in BTG Pactual's long position.| United Rentals vs. Alta Equipment Group | United Rentals vs. McGrath RentCorp | United Rentals vs. Herc Holdings | United Rentals vs. HE Equipment Services |
| BTG Pactual vs. BTG Pactual Chile | BTG Pactual vs. MBI Administradora General | BTG Pactual vs. HMC SA ADMINISTRADORA | BTG Pactual vs. Weg ADM General |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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