Correlation Between United Rentals and Mold Tek
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By analyzing existing cross correlation between United Rentals and Mold Tek Packaging Limited, you can compare the effects of market volatilities on United Rentals and Mold Tek 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 Mold Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Mold Tek.
Diversification Opportunities for United Rentals and Mold Tek
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and Mold is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Mold Tek Packaging Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mold Tek Packaging 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 Mold Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mold Tek Packaging has no effect on the direction of United Rentals i.e., United Rentals and Mold Tek go up and down completely randomly.
Pair Corralation between United Rentals and Mold Tek
Considering the 90-day investment horizon United Rentals is expected to under-perform the Mold Tek. But the stock apears to be less risky and, when comparing its historical volatility, United Rentals is 1.06 times less risky than Mold Tek. The stock trades about -0.04 of its potential returns per unit of risk. The Mold Tek Packaging Limited is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 73,655 in Mold Tek Packaging Limited on September 12, 2024 and sell it today you would earn a total of 2,430 from holding Mold Tek Packaging Limited or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
United Rentals vs. Mold Tek Packaging Limited
Performance |
| Timeline |
| United Rentals |
| Mold Tek Packaging |
United Rentals and Mold Tek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Mold Tek
The main advantage of trading using opposite United Rentals and Mold Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Mold Tek 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 Mold Tek will offset losses from the drop in Mold Tek'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 Stocks Directory module to find actively traded stocks across global markets.
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