Correlation Between United Rentals and Navient
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By analyzing existing cross correlation between United Rentals and Navient 5 percent, you can compare the effects of market volatilities on United Rentals and Navient 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 Navient. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Navient.
Diversification Opportunities for United Rentals and Navient
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Navient is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Navient 5 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navient 5 percent 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 Navient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navient 5 percent has no effect on the direction of United Rentals i.e., United Rentals and Navient go up and down completely randomly.
Pair Corralation between United Rentals and Navient
Considering the 90-day investment horizon United Rentals is expected to generate 0.97 times more return on investment than Navient. However, United Rentals is 1.04 times less risky than Navient. It trades about 0.2 of its potential returns per unit of risk. Navient 5 percent is currently generating about -0.21 per unit of risk. If you would invest 78,451 in United Rentals on September 5, 2024 and sell it today you would earn a total of 8,451 from holding United Rentals or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
United Rentals vs. Navient 5 percent
Performance |
| Timeline |
| United Rentals |
| Navient 5 percent |
United Rentals and Navient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Navient
The main advantage of trading using opposite United Rentals and Navient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Navient 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 Navient will offset losses from the drop in Navient'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 |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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