Correlation Between United Rentals and Ubs (cay)
Can any of the company-specific risk be diversified away by investing in both United Rentals and Ubs (cay) 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 Ubs (cay) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Ubs Select Prime, you can compare the effects of market volatilities on United Rentals and Ubs (cay) 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 Ubs (cay). Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Ubs (cay).
Diversification Opportunities for United Rentals and Ubs (cay)
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Ubs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Ubs Select Prime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs Select Prime 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 Ubs (cay). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs Select Prime has no effect on the direction of United Rentals i.e., United Rentals and Ubs (cay) go up and down completely randomly.
Pair Corralation between United Rentals and Ubs (cay)
If you would invest 78,451 in United Rentals on September 3, 2024 and sell it today you would earn a total of 8,149 from holding United Rentals or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. Ubs Select Prime
Performance |
| Timeline |
| United Rentals |
| Ubs Select Prime |
United Rentals and Ubs (cay) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Ubs (cay)
The main advantage of trading using opposite United Rentals and Ubs (cay) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Ubs (cay) 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 Ubs (cay) will offset losses from the drop in Ubs (cay)'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 |
| Ubs (cay) vs. Vanguard Total Stock | Ubs (cay) vs. Vanguard 500 Index | Ubs (cay) vs. Vanguard Total Stock | Ubs (cay) vs. Vanguard Total Stock |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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