Correlation Between United Rentals and QEP
Can any of the company-specific risk be diversified away by investing in both United Rentals and QEP 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 QEP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and QEP Co Inc, you can compare the effects of market volatilities on United Rentals and QEP 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 QEP. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and QEP.
Diversification Opportunities for United Rentals and QEP
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and QEP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and QEP Co Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QEP Co Inc 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 QEP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QEP Co Inc has no effect on the direction of United Rentals i.e., United Rentals and QEP go up and down completely randomly.
Pair Corralation between United Rentals and QEP
If you would invest (100.00) in QEP Co Inc on January 5, 2025 and sell it today you would earn a total of 100.00 from holding QEP Co Inc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Rentals vs. QEP Co Inc
Performance |
| Timeline |
| United Rentals |
| QEP Co Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
United Rentals and QEP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and QEP
The main advantage of trading using opposite United Rentals and QEP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, QEP 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 QEP will offset losses from the drop in QEP'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 |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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