Correlation Between United Rentals and Mainstay Defined
Can any of the company-specific risk be diversified away by investing in both United Rentals and Mainstay Defined at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining United Rentals and Mainstay Defined into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Rentals and Mainstay Defined Term, you can compare the effects of market volatilities on United Rentals and Mainstay Defined 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 Mainstay Defined. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and Mainstay Defined.
Diversification Opportunities for United Rentals and Mainstay Defined
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and Mainstay is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and Mainstay Defined Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Defined Term 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 Mainstay Defined. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Defined Term has no effect on the direction of United Rentals i.e., United Rentals and Mainstay Defined go up and down completely randomly.
Pair Corralation between United Rentals and Mainstay Defined
If you would invest 0.00 in Mainstay Defined Term on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Mainstay Defined Term or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
United Rentals vs. Mainstay Defined Term
Performance |
| Timeline |
| United Rentals |
| Mainstay Defined Term |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Rentals and Mainstay Defined Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Rentals and Mainstay Defined
The main advantage of trading using opposite United Rentals and Mainstay Defined positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, Mainstay Defined 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 Mainstay Defined will offset losses from the drop in Mainstay Defined'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 |
| Mainstay Defined vs. World Energy Fund | Mainstay Defined vs. Alpsalerian Energy Infrastructure | Mainstay Defined vs. Oil Gas Ultrasector | Mainstay Defined vs. Fidelity Advisor Energy |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |