Correlation Between United Rentals and ETF Managers
Can any of the company-specific risk be diversified away by investing in both United Rentals and ETF Managers 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 ETF Managers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and ETF Managers Group, you can compare the effects of market volatilities on United Rentals and ETF Managers 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 ETF Managers. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and ETF Managers.
Diversification Opportunities for United Rentals and ETF Managers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and ETF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and ETF Managers Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETF Managers Group 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 ETF Managers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETF Managers Group has no effect on the direction of United Rentals i.e., United Rentals and ETF Managers go up and down completely randomly.
Pair Corralation between United Rentals and ETF Managers
If you would invest 71,129 in United Rentals on September 12, 2024 and sell it today you would earn a total of 8,568 from holding United Rentals or generate 12.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
United Rentals vs. ETF Managers Group
Performance |
| Timeline |
| United Rentals |
| ETF Managers Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and ETF Managers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and ETF Managers
The main advantage of trading using opposite United Rentals and ETF Managers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, ETF Managers 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 ETF Managers will offset losses from the drop in ETF Managers' long position.| United Rentals vs. HE Equipment Services | United Rentals vs. GATX Corporation | United Rentals vs. McGrath RentCorp | United Rentals vs. Alta Equipment Group |
| ETF Managers vs. MicroSectors Gold Miners | ETF Managers vs. MicroSectors Gold Miners | ETF Managers vs. Direxion Daily Cloud |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |