Correlation Between United Rentals and International Fund
Can any of the company-specific risk be diversified away by investing in both United Rentals and International Fund 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 International Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and International Fund I, you can compare the effects of market volatilities on United Rentals and International Fund 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 International Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and International Fund.
Diversification Opportunities for United Rentals and International Fund
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and International Fund I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Fund 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 International Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Fund has no effect on the direction of United Rentals i.e., United Rentals and International Fund go up and down completely randomly.
Pair Corralation between United Rentals and International Fund
If you would invest 78,451 in United Rentals on September 4, 2024 and sell it today you would earn a total of 7,254 from holding United Rentals or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Rentals vs. International Fund I
Performance |
| Timeline |
| United Rentals |
| International Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and International Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and International Fund
The main advantage of trading using opposite United Rentals and International Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, International Fund 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 International Fund will offset losses from the drop in International Fund'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 |
| International Fund vs. Prudential Health Sciences | International Fund vs. Alphacentric Lifesci Healthcare | International Fund vs. Health Biotchnology Portfolio | International Fund vs. Lord Abbett Health |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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