Correlation Between NTRCN and United Rentals
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By analyzing existing cross correlation between NTRCN 395 13 MAY 50 and United Rentals, you can compare the effects of market volatilities on NTRCN 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 NTRCN with a short position of United Rentals. Check out your portfolio center. Please also check ongoing floating volatility patterns of NTRCN and United Rentals.
Diversification Opportunities for NTRCN and United Rentals
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NTRCN and United is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding NTRCN 395 13 MAY 50 and United Rentals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Rentals and NTRCN 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 NTRCN 395 13 MAY 50 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 NTRCN i.e., NTRCN and United Rentals go up and down completely randomly.
Pair Corralation between NTRCN and United Rentals
Assuming the 90 days trading horizon NTRCN 395 13 MAY 50 is expected to under-perform the United Rentals. But the bond apears to be less risky and, when comparing its historical volatility, NTRCN 395 13 MAY 50 is 1.22 times less risky than United Rentals. The bond trades about -0.01 of its potential returns per unit of risk. The United Rentals is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 34,350 in United Rentals on August 28, 2024 and sell it today you would earn a total of 52,967 from holding United Rentals or generate 154.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.56% |
| Values | Daily Returns |
NTRCN 395 13 MAY 50 vs. United Rentals
Performance |
| Timeline |
| NTRCN 5 13 |
| United Rentals |
NTRCN and United Rentals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NTRCN and United Rentals
The main advantage of trading using opposite NTRCN and United Rentals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NTRCN 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.| NTRCN vs. PepsiCo | NTRCN vs. Primo Brands | NTRCN vs. Celsius Holdings | NTRCN vs. Constellation Brands Class |
| United Rentals vs. PROG Holdings | United Rentals vs. McGrath RentCorp | United Rentals vs. Mega Matrix Corp | United Rentals vs. FTAI Aviation Ltd |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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