Correlation Between Pinterest and U Haul

Can any of the company-specific risk be diversified away by investing in both Pinterest and U Haul 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 Pinterest and U Haul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pinterest and U Haul Holding, you can compare the effects of market volatilities on Pinterest and U Haul 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 Pinterest with a short position of U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and U Haul.

Diversification Opportunities for Pinterest and U Haul

0.64

Correlation Coefficient

Pinterest  U Haul

Poor diversification

The 3 months correlation between Pinterest and UHAL is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest 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 Pinterest 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 Pinterest are associated (or correlated) with U Haul. 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 Pinterest i.e., Pinterest and U Haul go up and down completely randomly.

Pair Corralation between Pinterest and U Haul

Given the investment horizon of 90 days Pinterest is expected to generate 1.68 times more return on investment than U Haul. However, Pinterest is 1.68 times more volatile than U Haul Holding. It trades about 0.07 of its potential returns per unit of risk. U Haul Holding is currently generating about 0.06 per unit of risk. If you would invest  2,931  in Pinterest on September 12, 2024 and sell it today you would earn a total of  262.00  from holding Pinterest or generate 8.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Pinterest  vs.  U Haul Holding

Pinterest

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Pinterest are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Pinterest may actually be approaching a critical reversion point that can send shares even higher in January 2025.

U Haul Holding

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in U Haul Holding are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, U Haul is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pinterest and U Haul

The main advantage of trading using opposite Pinterest and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest position performs unexpectedly, U Haul 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 will offset losses from the drop in U Haul's long position.

The idea behind Pinterest and U Haul Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.