Correlation Between United Rentals and Greif,
Can any of the company-specific risk be diversified away by investing in both United Rentals and Greif, 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 Greif, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Greif, Inc, you can compare the effects of market volatilities on United Rentals and Greif, 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 Greif,. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Greif,.
Diversification Opportunities for United Rentals and Greif,
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Greif, is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Greif, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greif, Inc 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 Greif,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greif, Inc has no effect on the direction of United Rentals i.e., United Rentals and Greif, go up and down completely randomly.
Pair Corralation between United Rentals and Greif,
Considering the 90-day investment horizon United Rentals is expected to under-perform the Greif,. In addition to that, United Rentals is 1.44 times more volatile than Greif, Inc. It trades about -0.26 of its total potential returns per unit of risk. Greif, Inc is currently generating about 0.01 per unit of volatility. If you would invest 7,337 in Greif, Inc on September 13, 2024 and sell it today you would earn a total of 15.00 from holding Greif, Inc or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. Greif, Inc
Performance |
| Timeline |
| United Rentals |
| Greif, Inc |
United Rentals and Greif, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Greif,
The main advantage of trading using opposite United Rentals and Greif, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Greif, 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 Greif, will offset losses from the drop in Greif,'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 |
| Greif, vs. Magnite | Greif, vs. Entravision Communications | Greif, vs. CarsalesCom Ltd ADR | Greif, vs. GEN Restaurant Group, |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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