Correlation Between United Rentals and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both United Rentals and Strategic Asset 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 Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Strategic Asset Management, you can compare the effects of market volatilities on United Rentals and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Strategic Asset.
Diversification Opportunities for United Rentals and Strategic Asset
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between United and Strategic is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of United Rentals i.e., United Rentals and Strategic Asset go up and down completely randomly.
Pair Corralation between United Rentals and Strategic Asset
Considering the 90-day investment horizon United Rentals is expected to generate 4.48 times more return on investment than Strategic Asset. However, United Rentals is 4.48 times more volatile than Strategic Asset Management. It trades about 0.08 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.11 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 | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
United Rentals vs. Strategic Asset Management
Performance |
| Timeline |
| United Rentals |
| Strategic Asset Mana |
United Rentals and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Strategic Asset
The main advantage of trading using opposite United Rentals and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset'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 |
| Strategic Asset vs. Balanced Fund Investor | Strategic Asset vs. Abr 7525 Volatility | Strategic Asset vs. Western Asset Municipal | Strategic Asset vs. Materials Portfolio Fidelity |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |