Correlation Between United Rentals and Cannamerica Brands
Can any of the company-specific risk be diversified away by investing in both United Rentals and Cannamerica Brands 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 Cannamerica Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Cannamerica Brands Corp, you can compare the effects of market volatilities on United Rentals and Cannamerica Brands 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 Cannamerica Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Cannamerica Brands.
Diversification Opportunities for United Rentals and Cannamerica Brands
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Cannamerica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Cannamerica Brands Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cannamerica Brands Corp 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 Cannamerica Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cannamerica Brands Corp has no effect on the direction of United Rentals i.e., United Rentals and Cannamerica Brands go up and down completely randomly.
Pair Corralation between United Rentals and Cannamerica Brands
If you would invest 67,885 in United Rentals on September 3, 2024 and sell it today you would earn a total of 18,715 from holding United Rentals or generate 27.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.32% |
| Values | Daily Returns |
United Rentals vs. Cannamerica Brands Corp
Performance |
| Timeline |
| United Rentals |
| Cannamerica Brands Corp |
United Rentals and Cannamerica Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Cannamerica Brands
The main advantage of trading using opposite United Rentals and Cannamerica Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Cannamerica Brands 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 Cannamerica Brands will offset losses from the drop in Cannamerica Brands' long position.| United Rentals vs. Alta Equipment Group | United Rentals vs. McGrath RentCorp | United Rentals vs. Herc Holdings | United Rentals vs. HE Equipment Services |
| Cannamerica Brands vs. Green Cures Botanical | Cannamerica Brands vs. Cann American Corp | Cannamerica Brands vs. Galexxy Holdings | Cannamerica Brands vs. Indoor Harvest 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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