Correlation Between United Rentals and 404280CF4
Specify exactly 2 symbols:
By analyzing existing cross correlation between United Rentals and HSBC HOLDINGS PLC, you can compare the effects of market volatilities on United Rentals and 404280CF4 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 404280CF4. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and 404280CF4.
Diversification Opportunities for United Rentals and 404280CF4
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and 404280CF4 is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and HSBC HOLDINGS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HSBC HOLDINGS PLC 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 404280CF4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HSBC HOLDINGS PLC has no effect on the direction of United Rentals i.e., United Rentals and 404280CF4 go up and down completely randomly.
Pair Corralation between United Rentals and 404280CF4
Considering the 90-day investment horizon United Rentals is expected to generate 6.46 times more return on investment than 404280CF4. However, United Rentals is 6.46 times more volatile than HSBC HOLDINGS PLC. It trades about 0.18 of its potential returns per unit of risk. HSBC HOLDINGS PLC is currently generating about -0.09 per unit of risk. If you would invest 79,198 in United Rentals on September 2, 2024 and sell it today you would earn a total of 7,402 from holding United Rentals or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
United Rentals vs. HSBC HOLDINGS PLC
Performance |
| Timeline |
| United Rentals |
| HSBC HOLDINGS PLC |
United Rentals and 404280CF4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and 404280CF4
The main advantage of trading using opposite United Rentals and 404280CF4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, 404280CF4 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 404280CF4 will offset losses from the drop in 404280CF4'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 |
| 404280CF4 vs. FactSet Research Systems | 404280CF4 vs. Playtika Holding Corp | 404280CF4 vs. Kaltura | 404280CF4 vs. NetSol 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stocks Directory Find actively traded stocks across global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |