Correlation Between United Rentals and PacificHealth Laboratories
Can any of the company-specific risk be diversified away by investing in both United Rentals and PacificHealth Laboratories 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 PacificHealth Laboratories into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and PacificHealth Laboratories, you can compare the effects of market volatilities on United Rentals and PacificHealth Laboratories 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 PacificHealth Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and PacificHealth Laboratories.
Diversification Opportunities for United Rentals and PacificHealth Laboratories
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and PacificHealth is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and PacificHealth Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PacificHealth Laboratories 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 PacificHealth Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PacificHealth Laboratories has no effect on the direction of United Rentals i.e., United Rentals and PacificHealth Laboratories go up and down completely randomly.
Pair Corralation between United Rentals and PacificHealth Laboratories
If you would invest 78,769 in United Rentals on September 3, 2024 and sell it today you would earn a total of 7,831 from holding United Rentals or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
United Rentals vs. PacificHealth Laboratories
Performance |
| Timeline |
| United Rentals |
| PacificHealth Laboratories |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and PacificHealth Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and PacificHealth Laboratories
The main advantage of trading using opposite United Rentals and PacificHealth Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, PacificHealth Laboratories 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 PacificHealth Laboratories will offset losses from the drop in PacificHealth Laboratories' long position.| United Rentals vs. Alta Equipment Group | United Rentals vs. McGrath RentCorp | United Rentals vs. Herc Holdings | United Rentals vs. HE Equipment Services |
| PacificHealth Laboratories vs. Kimberly Parry Organics | PacificHealth Laboratories vs. Winning Brands Corp |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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