Correlation Between Vestis and U-Haul Holding
Can any of the company-specific risk be diversified away by investing in both Vestis and U-Haul Holding 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 Vestis and U-Haul Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestis and U Haul Holding, you can compare the effects of market volatilities on Vestis and U-Haul Holding 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 Vestis with a short position of U-Haul Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and U-Haul Holding.
Diversification Opportunities for Vestis and U-Haul Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vestis and U-Haul is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vestis and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding and Vestis 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 Vestis are associated (or correlated) with U-Haul Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Vestis i.e., Vestis and U-Haul Holding go up and down completely randomly.
Pair Corralation between Vestis and U-Haul Holding
Given the investment horizon of 90 days Vestis is expected to under-perform the U-Haul Holding. In addition to that, Vestis is 1.15 times more volatile than U Haul Holding. It trades about -0.5 of its total potential returns per unit of risk. U Haul Holding is currently generating about -0.04 per unit of volatility. If you would invest 6,322 in U Haul Holding on December 6, 2024 and sell it today you would lose (96.00) from holding U Haul Holding or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestis vs. U Haul Holding
Performance |
| Timeline |
| Vestis |
| U Haul Holding |
Vestis and U-Haul Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestis and U-Haul Holding
The main advantage of trading using opposite Vestis and U-Haul Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis position performs unexpectedly, U-Haul Holding 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 U-Haul Holding will offset losses from the drop in U-Haul Holding's long position.| Vestis vs. Bridgford Foods | Vestis vs. Global Crossing Airlines | Vestis vs. Volaris | Vestis vs. Tyson Foods |
| U-Haul Holding vs. Oasis Hotel Resort | U-Haul Holding vs. Braemar Hotels Resorts | U-Haul Holding vs. The Cheesecake Factory | U-Haul Holding vs. Boyd Gaming |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |