Correlation Between United Rentals and Cavalier Multi
Can any of the company-specific risk be diversified away by investing in both United Rentals and Cavalier Multi 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 Cavalier Multi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Cavalier Multi Strategist, you can compare the effects of market volatilities on United Rentals and Cavalier Multi 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 Cavalier Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Cavalier Multi.
Diversification Opportunities for United Rentals and Cavalier Multi
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Cavalier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Cavalier Multi Strategist in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cavalier Multi Strategist 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 Cavalier Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cavalier Multi Strategist has no effect on the direction of United Rentals i.e., United Rentals and Cavalier Multi go up and down completely randomly.
Pair Corralation between United Rentals and Cavalier Multi
If you would invest (100.00) in Cavalier Multi Strategist on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Cavalier Multi Strategist or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Rentals vs. Cavalier Multi Strategist
Performance |
| Timeline |
| United Rentals |
| Cavalier Multi Strategist |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and Cavalier Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Cavalier Multi
The main advantage of trading using opposite United Rentals and Cavalier Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Cavalier Multi 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 Cavalier Multi will offset losses from the drop in Cavalier Multi'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 |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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