Correlation Between United Rentals and CARPENTER
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By analyzing existing cross correlation between United Rentals and CARPENTER TECHNOLOGY P, you can compare the effects of market volatilities on United Rentals and CARPENTER 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 CARPENTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and CARPENTER.
Diversification Opportunities for United Rentals and CARPENTER
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and CARPENTER is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and CARPENTER TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARPENTER TECHNOLOGY 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 CARPENTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARPENTER TECHNOLOGY has no effect on the direction of United Rentals i.e., United Rentals and CARPENTER go up and down completely randomly.
Pair Corralation between United Rentals and CARPENTER
Considering the 90-day investment horizon United Rentals is expected to under-perform the CARPENTER. In addition to that, United Rentals is 9.24 times more volatile than CARPENTER TECHNOLOGY P. It trades about -0.29 of its total potential returns per unit of risk. CARPENTER TECHNOLOGY P is currently generating about -0.13 per unit of volatility. If you would invest 10,069 in CARPENTER TECHNOLOGY P on September 21, 2024 and sell it today you would lose (59.00) from holding CARPENTER TECHNOLOGY P or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Rentals vs. CARPENTER TECHNOLOGY P
Performance |
| Timeline |
| United Rentals |
| CARPENTER TECHNOLOGY |
United Rentals and CARPENTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and CARPENTER
The main advantage of trading using opposite United Rentals and CARPENTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, CARPENTER 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 CARPENTER will offset losses from the drop in CARPENTER'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 |
| CARPENTER vs. United Airlines Holdings | CARPENTER vs. GEN Restaurant Group, | CARPENTER vs. Yum Brands | CARPENTER vs. CAVA 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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