Correlation Between United Rentals and MOSAIC
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By analyzing existing cross correlation between United Rentals and MOSAIC NEW 4875, you can compare the effects of market volatilities on United Rentals and MOSAIC 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 MOSAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and MOSAIC.
Diversification Opportunities for United Rentals and MOSAIC
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between United and MOSAIC is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals and MOSAIC NEW 4875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOSAIC NEW 4875 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 MOSAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOSAIC NEW 4875 has no effect on the direction of United Rentals i.e., United Rentals and MOSAIC go up and down completely randomly.
Pair Corralation between United Rentals and MOSAIC
Considering the 90-day investment horizon United Rentals is expected to generate 0.82 times more return on investment than MOSAIC. However, United Rentals is 1.22 times less risky than MOSAIC. It trades about 0.08 of its potential returns per unit of risk. MOSAIC NEW 4875 is currently generating about -0.11 per unit of risk. If you would invest 72,810 in United Rentals on September 13, 2024 and sell it today you would earn a total of 6,887 from holding United Rentals or generate 9.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 53.97% |
Values | Daily Returns |
United Rentals vs. MOSAIC NEW 4875
Performance |
Timeline |
United Rentals |
MOSAIC NEW 4875 |
United Rentals and MOSAIC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Rentals and MOSAIC
The main advantage of trading using opposite United Rentals and MOSAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Rentals position performs unexpectedly, MOSAIC 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 MOSAIC will offset losses from the drop in MOSAIC'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 |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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