Correlation Between United Rentals and Marti Technologies
Can any of the company-specific risk be diversified away by investing in both United Rentals and Marti Technologies 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 Marti Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Marti Technologies, you can compare the effects of market volatilities on United Rentals and Marti Technologies 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 Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Marti Technologies.
Diversification Opportunities for United Rentals and Marti Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Marti is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of United Rentals i.e., United Rentals and Marti Technologies go up and down completely randomly.
Pair Corralation between United Rentals and Marti Technologies
Considering the 90-day investment horizon United Rentals is expected to generate 0.28 times more return on investment than Marti Technologies. However, United Rentals is 3.52 times less risky than Marti Technologies. It trades about 0.11 of its potential returns per unit of risk. Marti Technologies is currently generating about 0.0 per unit of risk. If you would invest 38,363 in United Rentals on August 31, 2024 and sell it today you would earn a total of 48,237 from holding United Rentals or generate 125.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
United Rentals vs. Marti Technologies
Performance |
| Timeline |
| United Rentals |
| Marti Technologies |
United Rentals and Marti Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Marti Technologies
The main advantage of trading using opposite United Rentals and Marti Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Marti Technologies 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 Marti Technologies will offset losses from the drop in Marti Technologies' long position.| United Rentals vs. HE Equipment Services | United Rentals vs. GATX Corporation | United Rentals vs. McGrath RentCorp | United Rentals vs. Alta Equipment Group |
| Marti Technologies vs. Electrovaya Common Shares | Marti Technologies vs. Avis Budget Group | Marti Technologies vs. Supercom | Marti Technologies vs. United Rentals |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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