Correlation Between United Rentals and China Foods
Can any of the company-specific risk be diversified away by investing in both United Rentals and China Foods 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 China Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and China Foods Limited, you can compare the effects of market volatilities on United Rentals and China Foods 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 China Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and China Foods.
Diversification Opportunities for United Rentals and China Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and China Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Foods Limited 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 China Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Foods Limited has no effect on the direction of United Rentals i.e., United Rentals and China Foods go up and down completely randomly.
Pair Corralation between United Rentals and China Foods
If you would invest 50,059 in United Rentals on September 4, 2024 and sell it today you would earn a total of 36,843 from holding United Rentals or generate 73.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 89.88% |
| Values | Daily Returns |
United Rentals vs. China Foods Limited
Performance |
| Timeline |
| United Rentals |
| China Foods Limited |
United Rentals and China Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and China Foods
The main advantage of trading using opposite United Rentals and China Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, China Foods 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 China Foods will offset losses from the drop in China Foods' long position.| United Rentals vs. HE Equipment Services | United Rentals vs. GATX Corporation | United Rentals vs. McGrath RentCorp | United Rentals vs. Alta Equipment Group |
| China Foods vs. CECO Environmental Corp | China Foods vs. Highway Holdings Limited | China Foods vs. Papaya Growth Opportunity | China Foods vs. Bausch Lomb Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |