Correlation Between Vestis and U Haul

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Can any of the company-specific risk be diversified away by investing in both Vestis 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 Vestis and U Haul 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 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. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestis and U Haul.

Diversification Opportunities for Vestis and U Haul

0.47
  Correlation Coefficient

Very weak diversification

The 24 months correlation between Vestis and UHAL is 0.47. 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. 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 go up and down completely randomly.

Pair Corralation between Vestis and U Haul

Given the investment horizon of 90 days Vestis is expected to generate 1.92 times less return on investment than U Haul. In addition to that, Vestis is 1.5 times more volatile than U Haul Holding. It trades about 0.01 of its total potential returns per unit of risk. U Haul Holding is currently generating about 0.02 per unit of volatility. If you would invest  5,957  in U Haul Holding on December 3, 2023 and sell it today you would earn a total of  556.00  from holding U Haul Holding or generate 9.33% return on investment over 90 days.
Time Period24 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy21.82%
ValuesDaily Returns

Vestis  vs.  U-Haul Holding

 Performance 
       Timeline  
Vestis 

Risk-Adjusted Performance

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High
Very Weak
Over the last 90 days Vestis has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Vestis is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
U-Haul Holding 

Risk-Adjusted Performance

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Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in U Haul Holding are ranked lower than 1 (%) 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.

Vestis and U Haul Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Vestis and U Haul

The main advantage of trading using opposite Vestis and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestis 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 Vestis 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.
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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