Correlation Between United Rentals and PNE AG
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By analyzing existing cross correlation between United Rentals and PNE AG, you can compare the effects of market volatilities on United Rentals and PNE AG 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 PNE AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and PNE AG.
Diversification Opportunities for United Rentals and PNE AG
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and PNE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and PNE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNE AG 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 PNE AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNE AG has no effect on the direction of United Rentals i.e., United Rentals and PNE AG go up and down completely randomly.
Pair Corralation between United Rentals and PNE AG
Considering the 90-day investment horizon United Rentals is expected to generate 1.37 times more return on investment than PNE AG. However, United Rentals is 1.37 times more volatile than PNE AG. It trades about 0.12 of its potential returns per unit of risk. PNE AG is currently generating about -0.13 per unit of risk. If you would invest 63,818 in United Rentals on September 3, 2024 and sell it today you would earn a total of 22,782 from holding United Rentals or generate 35.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.9% |
| Values | Daily Returns |
United Rentals vs. PNE AG
Performance |
| Timeline |
| United Rentals |
| PNE AG |
United Rentals and PNE AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and PNE AG
The main advantage of trading using opposite United Rentals and PNE AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, PNE AG 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 PNE AG will offset losses from the drop in PNE AG's long position.| United Rentals vs. Alta Equipment Group | United Rentals vs. McGrath RentCorp | United Rentals vs. Herc Holdings | United Rentals vs. HE Equipment Services |
| PNE AG vs. FARO Technologies | PNE AG vs. Virtus Investment Partners | PNE AG vs. Gladstone Investment | PNE AG vs. REINET INVESTMENTS SCA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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