Correlation Between United Rentals and IShares MSCI
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By analyzing existing cross correlation between United Rentals and iShares MSCI ACWI, you can compare the effects of market volatilities on United Rentals and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and IShares MSCI.
Diversification Opportunities for United Rentals and IShares MSCI
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and IShares is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and iShares MSCI ACWI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI ACWI 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI ACWI has no effect on the direction of United Rentals i.e., United Rentals and IShares MSCI go up and down completely randomly.
Pair Corralation between United Rentals and IShares MSCI
Considering the 90-day investment horizon United Rentals is expected to generate 2.71 times more return on investment than IShares MSCI. However, United Rentals is 2.71 times more volatile than iShares MSCI ACWI. It trades about 0.08 of its potential returns per unit of risk. iShares MSCI ACWI is currently generating about 0.13 per unit of risk. If you would invest 34,287 in United Rentals on September 12, 2024 and sell it today you would earn a total of 45,315 from holding United Rentals or generate 132.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.78% |
| Values | Daily Returns |
United Rentals vs. iShares MSCI ACWI
Performance |
| Timeline |
| United Rentals |
| iShares MSCI ACWI |
United Rentals and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and IShares MSCI
The main advantage of trading using opposite United Rentals and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI'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 |
| IShares MSCI vs. Mivne Real Estate | IShares MSCI vs. Photomyne | IShares MSCI vs. Israel Land Development | IShares MSCI vs. Bezeq Israeli Telecommunication |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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