Correlation Between United Rentals and SOUTHERN
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By analyzing existing cross correlation between United Rentals and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on United Rentals and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and SOUTHERN.
Diversification Opportunities for United Rentals and SOUTHERN
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between United and SOUTHERN is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of United Rentals i.e., United Rentals and SOUTHERN go up and down completely randomly.
Pair Corralation between United Rentals and SOUTHERN
Considering the 90-day investment horizon United Rentals is expected to generate 1.99 times more return on investment than SOUTHERN. However, United Rentals is 1.99 times more volatile than SOUTHERN CALIF EDISON. It trades about 0.2 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.18 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. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| United Rentals |
| SOUTHERN CALIF EDISON |
United Rentals and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and SOUTHERN
The main advantage of trading using opposite United Rentals and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN'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 |
| SOUTHERN vs. Park Ohio Holdings | SOUTHERN vs. Primoris Services | SOUTHERN vs. Griffon | SOUTHERN vs. AKITA Drilling |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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