Correlation Between JEFFERIES and United Rentals
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By analyzing existing cross correlation between JEFFERIES GROUP LLC and United Rentals, you can compare the effects of market volatilities on JEFFERIES and United Rentals 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 JEFFERIES with a short position of United Rentals. Check out your portfolio center. Please also check ongoing floating volatility patterns of JEFFERIES and United Rentals.
Diversification Opportunities for JEFFERIES and United Rentals
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between JEFFERIES and United is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding JEFFERIES GROUP LLC and United Rentals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Rentals and JEFFERIES 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 JEFFERIES GROUP LLC are associated (or correlated) with United Rentals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Rentals has no effect on the direction of JEFFERIES i.e., JEFFERIES and United Rentals go up and down completely randomly.
Pair Corralation between JEFFERIES and United Rentals
Assuming the 90 days trading horizon JEFFERIES is expected to generate 35.7 times less return on investment than United Rentals. But when comparing it to its historical volatility, JEFFERIES GROUP LLC is 2.52 times less risky than United Rentals. It trades about 0.01 of its potential returns per unit of risk. United Rentals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 46,755 in United Rentals on September 14, 2024 and sell it today you would earn a total of 30,856 from holding United Rentals or generate 66.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
JEFFERIES GROUP LLC vs. United Rentals
Performance |
| Timeline |
| JEFFERIES GROUP LLC |
| United Rentals |
JEFFERIES and United Rentals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JEFFERIES and United Rentals
The main advantage of trading using opposite JEFFERIES and United Rentals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JEFFERIES position performs unexpectedly, United Rentals 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 United Rentals will offset losses from the drop in United Rentals' long position.| JEFFERIES vs. United Rentals | JEFFERIES vs. Molson Coors Brewing | JEFFERIES vs. Air Lease | JEFFERIES vs. FTAI Aviation Ltd |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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