Correlation Between United Rentals and Alphacentric Municipal
Can any of the company-specific risk be diversified away by investing in both United Rentals and Alphacentric Municipal 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 Alphacentric Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Alphacentric Municipal Opportunities, you can compare the effects of market volatilities on United Rentals and Alphacentric Municipal 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 Alphacentric Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Alphacentric Municipal.
Diversification Opportunities for United Rentals and Alphacentric Municipal
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Alphacentric is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Alphacentric Municipal Opportu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphacentric Municipal 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 Alphacentric Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphacentric Municipal has no effect on the direction of United Rentals i.e., United Rentals and Alphacentric Municipal go up and down completely randomly.
Pair Corralation between United Rentals and Alphacentric Municipal
If you would invest 78,451 in United Rentals on September 5, 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 | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
United Rentals vs. Alphacentric Municipal Opportu
Performance |
| Timeline |
| United Rentals |
| Alphacentric Municipal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and Alphacentric Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Alphacentric Municipal
The main advantage of trading using opposite United Rentals and Alphacentric Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Alphacentric Municipal 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 Alphacentric Municipal will offset losses from the drop in Alphacentric Municipal'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 |
| Alphacentric Municipal vs. Wilmington Funds | Alphacentric Municipal vs. Aig Government Money | Alphacentric Municipal vs. Franklin Government Money | Alphacentric Municipal vs. Matson Money Equity |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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