Correlation Between United Rentals and INGEN TECHNOLOGIES

By analyzing existing cross correlation between United Rentals and INGEN TECHNOLOGIES INC you can compare the effects of market volatilities on United Rentals and INGEN TECHNOLOGIES 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 INGEN TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Rentals and INGEN TECHNOLOGIES.

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Can any of the company-specific risk be diversified away by investing in both United Rentals and INGEN TECHNOLOGIES at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing United Rentals and INGEN TECHNOLOGIES into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for United Rentals and INGEN TECHNOLOGIES

0.37
Correlation
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Weak diversification

The 3 months correlation between United and INGEN is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding United Rentals Inc and INGEN TECHNOLOGIES INC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on INGEN TECHNOLOGIES INC 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 INGEN TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INGEN TECHNOLOGIES INC has no effect on the direction of United Rentals i.e. United Rentals and INGEN TECHNOLOGIES go up and down completely randomly.

Pair Corralation between United Rentals and INGEN TECHNOLOGIES

Considering 30-days investment horizon, United Rentals is expected to generate 8.51 times less return on investment than INGEN TECHNOLOGIES. But when comparing it to its historical volatility, United Rentals is 5.99 times less risky than INGEN TECHNOLOGIES. It trades about 0.15 of its potential returns per unit of risk. INGEN TECHNOLOGIES INC is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  0.01  in INGEN TECHNOLOGIES INC on May 7, 2020 and sell it today you would earn a total of  0.02  from holding INGEN TECHNOLOGIES INC or generate 200.0% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

United Rentals Inc  vs.  INGEN TECHNOLOGIES INC

 Performance (%) 
      Timeline 
United Rentals 
1010

United Rentals Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in United Rentals are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. Despite nearly fragile fundamental indicators, United Rentals layed out solid returns over the last few months and may actually be approaching a breakup point.
INGEN TECHNOLOGIES INC 
1414

INGEN TECHNOLOGIES Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in INGEN TECHNOLOGIES INC are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days. In spite of comparatively inconsistent essential indicators, INGEN TECHNOLOGIES unveiled solid returns over the last few months and may actually be approaching a breakup point.

United Rentals and INGEN TECHNOLOGIES Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.


 
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