Correlation Between United Rentals and Guler Yatirim
Can any of the company-specific risk be diversified away by investing in both United Rentals and Guler Yatirim 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 Guler Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Guler Yatirim Holding, you can compare the effects of market volatilities on United Rentals and Guler Yatirim 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 Guler Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Guler Yatirim.
Diversification Opportunities for United Rentals and Guler Yatirim
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Guler is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Guler Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guler Yatirim Holding 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 Guler Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guler Yatirim Holding has no effect on the direction of United Rentals i.e., United Rentals and Guler Yatirim go up and down completely randomly.
Pair Corralation between United Rentals and Guler Yatirim
Considering the 90-day investment horizon United Rentals is expected to generate 2.21 times more return on investment than Guler Yatirim. However, United Rentals is 2.21 times more volatile than Guler Yatirim Holding. It trades about 0.2 of its potential returns per unit of risk. Guler Yatirim Holding is currently generating about 0.16 per unit of risk. If you would invest 78,451 in United Rentals on September 4, 2024 and sell it today you would earn a total of 8,451 from holding United Rentals or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
United Rentals vs. Guler Yatirim Holding
Performance |
| Timeline |
| United Rentals |
| Guler Yatirim Holding |
United Rentals and Guler Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Guler Yatirim
The main advantage of trading using opposite United Rentals and Guler Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Guler Yatirim 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 Guler Yatirim will offset losses from the drop in Guler Yatirim'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 |
| Guler Yatirim vs. MEGA METAL | Guler Yatirim vs. Politeknik Metal Sanayi | Guler Yatirim vs. Sekerbank TAS | Guler Yatirim vs. Trabzonspor Sportif Yatirim |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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