Correlation Between United Rentals and 00206RCU4
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By analyzing existing cross correlation between United Rentals and ATT INC 565, you can compare the effects of market volatilities on United Rentals and 00206RCU4 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 00206RCU4. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and 00206RCU4.
Diversification Opportunities for United Rentals and 00206RCU4
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and 00206RCU4 is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and ATT INC 565 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT INC 565 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 00206RCU4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT INC 565 has no effect on the direction of United Rentals i.e., United Rentals and 00206RCU4 go up and down completely randomly.
Pair Corralation between United Rentals and 00206RCU4
Considering the 90-day investment horizon United Rentals is expected to under-perform the 00206RCU4. In addition to that, United Rentals is 1.9 times more volatile than ATT INC 565. It trades about -0.25 of its total potential returns per unit of risk. ATT INC 565 is currently generating about 0.2 per unit of volatility. If you would invest 10,054 in ATT INC 565 on September 12, 2024 and sell it today you would earn a total of 244.00 from holding ATT INC 565 or generate 2.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
United Rentals vs. ATT INC 565
Performance |
| Timeline |
| United Rentals |
| ATT INC 565 |
United Rentals and 00206RCU4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and 00206RCU4
The main advantage of trading using opposite United Rentals and 00206RCU4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, 00206RCU4 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 00206RCU4 will offset losses from the drop in 00206RCU4'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 |
| 00206RCU4 vs. Planet Fitness | 00206RCU4 vs. Stepan Company | 00206RCU4 vs. Playtika Holding Corp | 00206RCU4 vs. Avient Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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