Correlation Between United Rentals and Roadzen
Can any of the company-specific risk be diversified away by investing in both United Rentals and Roadzen 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 Roadzen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Roadzen, you can compare the effects of market volatilities on United Rentals and Roadzen 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 Roadzen. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Roadzen.
Diversification Opportunities for United Rentals and Roadzen
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Roadzen is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Roadzen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roadzen 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 Roadzen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roadzen has no effect on the direction of United Rentals i.e., United Rentals and Roadzen go up and down completely randomly.
Pair Corralation between United Rentals and Roadzen
Considering the 90-day investment horizon United Rentals is expected to generate 0.21 times more return on investment than Roadzen. However, United Rentals is 4.83 times less risky than Roadzen. It trades about 0.09 of its potential returns per unit of risk. Roadzen is currently generating about -0.04 per unit of risk. If you would invest 67,885 in United Rentals on September 3, 2024 and sell it today you would earn a total of 18,715 from holding United Rentals or generate 27.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. Roadzen
Performance |
| Timeline |
| United Rentals |
| Roadzen |
United Rentals and Roadzen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Roadzen
The main advantage of trading using opposite United Rentals and Roadzen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Roadzen 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 Roadzen will offset losses from the drop in Roadzen'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 |
| Roadzen vs. Unity Software | Roadzen vs. Daily Journal Corp | Roadzen vs. C3 Ai Inc | Roadzen vs. A2Z Smart Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |